The municipal market was unchanged to slightly weaker yesterday, as the week's largest scheduled deal was priced in the new-issue market.

Barclays Capital priced $600 million of revenue bonds for the Georgia State Road and Tollway Authority in two series. Bonds from the larger $480 million series mature from 2010 through 2021, with yields ranging from 1.05% with a 2.5% coupon in 2010 to 4.00% with a 5% coupon in 2021. Bonds from the smaller $120 million series mature from 2010 through 2021, with yields ranging from 1.05% with a 2.5% coupon in 2010 to 4.00% with a 4.5% coupon in 2021.

All bonds are callable at par in 2019. The credit is rated Aa3 by Moody's Investors Service and AA-minus by both Standard & Poor's and Fitch Ratings.

Traders said tax-exempt yields were mostly flat on the long end, while short-end and intermediate maturities showed losses of one or two basis points overall.

"We're down a little bit, the tone is a bit weaker, but it's fairly quiet," a trader in New York said. "There's not a whole lot of trading going on, and there's not a whole lot of movement. I'd say we're down a basis point or two in spots, but it's also pretty flat in spots, too. So it's somewhat mixed in that respect. But there's definitely a bit of a weaker tone out there."

"We're somewhat weaker overall, but it's really not across the board," a trader in San Francisco said. "We're pretty unchanged in spots, but on the whole, we're down a couple basis points. Maybe three basis points maximum, but mostly, where there's weakness, you're looking at a basis point or two."

The Treasury market showed losses yesterday. The yield on the benchmark 10-year note, which opened at 2.65%, finished at 2.75%. The yield on the two-year note was quoted near the end of the session at 0.97% after opening at 0.86%. The yield on the 30-year bond, which opened at 3.48%, was quoted near the end of the session at 3.55%.

Elsewhere in the new-issue market, Depfa First Albany Securities LLC priced $363.2 million of water and sewer system second general resolution revenue bonds for the New York City Municipal Water Finance Authority in two series. Bonds from the $99.6 million Series FF1 mature from 2014 through 2018, with yields ranging from 2.25% with a 3% coupon in 2014 to 3.15% with a 5% coupon in 2018. The bonds are not callable. Bonds from the $263.6 million Series FF2 have a split maturity in 2040, yielding 5.14% with a 5% coupon and 5.00% with a 5.5% coupon. The bonds are callable at par in 2019. The credit is rated Aa3 by Moody's, AA-plus by Standard & Poor's, and AA by Fitch.

Banc of America Securities LLC priced $232.2 million of second general highway and bridge trust fund bonds for the New York State Thruway Authority in two series. Bonds from the larger $201.6 million series mature from 2010 through 2029, with yields ranging from 1.77% with a 2.5% coupon in 2011 to 5.05% with a 5% coupon in 2029. Bonds maturing in 2010 will be decided via sealed bid. The bonds are callable at par in 2019.

Bonds from the smaller $30.6 million series mature from 2010 through 2012. Bonds maturing in 2010 will be decided via sealed bid. The 2011 maturity is split, yielding 1.77% with a 2.5% coupon and 1.77% with a 3.5% coupon. Bonds maturing in 2012 yield 2.00% with a 2.25% coupon. The bonds are not callable. The credit is rated AA by Standard & Poor's and AA-minus by Fitch.

Morgan Stanley priced $197.9 million of bonds for the California Educational Facilities Authority. The bonds mature in 2038 and 2039, yielding 5% priced at par and 4.90% with a 5.25% coupon, respectively. The bonds, which are callable at par in 2018, are rated Aa1 by Moody's and AA-plus by Standard & Poor's.

Rochester, N.Y., competitively sold $115.1 million of bond anticipation notes to Morgan Stanley with a net interest cost of 0.69%. The Bans mature in Feb. 2010, with a 1.5% coupon. They were not formally re-offered. The credit is rated MIG-1 by Moody's and SP-1-plus by Standard & Poor's.

In economic data released yesterday, import prices dropped 1.1% in January, after a revised 5.0% decline the previous month. Economists polled by Thomson Reuters predicted a 1.4% dip.

Housing starts came in at 466,000 in January after a revised 560,000 in December. Economists polled by Thomson had predicted 530,000 housing starts.

Building permits came in at 521,000 in January, down from 547,000 in December. Economists polled by Thomson had predicted 530,000 building permits.

Industrial production dropped 1.8% in January, after a revised 2.4% decline the previous month. Economists polled by Thomson Reuters had predicted a 1.5% drop.

Capacity utilization came in at 72% in January after a revised 73.3% in December. Economists polled by Thomson had predicted 72.5% capacity utilization.

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