Amid a weakening municipal market yesterday, California came with a massive $4.125 billion sale of taxable, tax-exempt, and Build America Bonds.

JPMorgan priced a $1.075 billion taxable component, in which the bonds mature in 2013, 2014, and 2019, yielding 3.75% priced at par in 2013, 4.635% with a 4.85% coupon in 2014, and 6.06% with a 6.2% coupon in 2019. The bonds were priced to yield 194, 245, and 288 basis points, respectively, over the comparable Treasury yields.

JPMorgan also priced a $1.3 billion tax-exempt component, which was broken up into three series.

Bonds from a $1.1 billion series mature from 2015 through 2018, from 2020 through 2022, and in 2025, with term bonds in 2029. Yields range from 2.95% with a 4% coupon in 2015 to 4.90% with a 5.25% coupon in 2029. The bonds are callable at par in 2019. Bonds from a $197.4 million series mature from 2015 through 2018 and from 2020 through 2022, with a term bond in 2029.

Yields range from 2.95% with a 5% coupon in 2015 to 5.00% priced at par in 2029. The bonds are callable at par in 2019. Bonds from a $13.9 million series mature from 2015 through 2018, from 2020 through 2022, and in 2025, with a term bond in 2029. Yields range from 2.95% with a 5% coupon in 2015 to 5.00% priced at par in 2029.

Goldman, Sachs & Co. priced the remaining $1.75 billion of the California bonds, which were taxable BABs. The bonds mature in 2039, yielding 7.23% with a 7.3% coupon, or 4.75% after the 35% federal subsidy.

The bonds were priced to yield 325 basis points over the comparable Treasury yield, and feature a make-whole call at Treasuries plus 50 basis points.

The bonds are rated Baa1 by Moody’s Investors Service and A by Standard & Poor’s.

Traders said tax-exempt yields in the secondary market rose about two or three basis points overall yesterday.

“We’re just a little bit weaker today,” a trader in New York said. “We firmed up for so long the last couple of weeks that I think there’s still a bit of room to go with the weakness we’ve seen the past couple of days. We’re probably down two or three basis points at this point.”

“We’re weaker again,” a trader in Los Angeles said. “This was to be expected, after such a long period of continued gains. It’s not that much today, though. Probably two or three basis points on the whole. But we’re definitely weaker.”

The Treasury market showed losses yesterday. The yield on the benchmark 10-year note, which opened at 3.18%, was quoted near the end of the session at 3.25%. The yield on the two-year note was quoted near the end of the session at 0.89% after opening at 0.85%. The yield on the 30-year bond, which opened at 4.01%, finished at 4.08%.

The Municipal Market Data triple-A scale yesterday yielded 2.76% in 10 years and 3.54% in 20 years following levels of 2.66% and 3.48%, respectively, on Wednesday.

As of Wednesday’s close, the triple-A muni scale in 10 years was at 83.4% of comparable Treasuries, according to MMD, while 30-year munis were 96.8% of comparable Treasuries. Thirty-year tax-exempt triple-A rated general obligation bonds were at 100.3% of the comparable London Interbank Offered Rate at Wednesday’s close.

Elsewhere in the new-issue market yesterday, Morgan Stanley priced $314.6 million of GO bonds for Delaware. The bonds mature from 2011 through 2027, with yields ranging from 1.00% with a 2% coupon in 2012 to 3.49% with a 5% coupon in 2027. Bonds maturing in 2011 were decided via sealed bid. The bonds, which are not callable, are rated triple-A by all three major rating agencies.

Morgan Stanley also priced $187.4 million of revenue bonds for the Wisconsin Health and Educational Facilities Authority. The bonds mature from 2010 through 2020, with term bonds in 2028, 2034, and 2039. Yields range from 2.13% with a 4% coupon in 2012 to 5.00% with a 5.25% coupon in 2039. Bonds maturing in 2010 and 2011 were not formally re-offered. The bonds, which are callable at par in 2019, are rated AA-minus by Standard & Poor’s and Fitch.

Siebert Brandford Shank & Co. priced $170.8 million of first-tier current interest revenue refunding bonds for the North Texas Tollway Authority. The bonds mature in 2044, yielding 5.50% with a 5.25% coupon. The bonds, which are callable at par in 2019, are rated A2 by Moody’s and A-minus by Standard & Poor’s.

In economic data released yesterday, initial jobless claims for the week ended Oct. 2 came in at 521,000 after a revised 554,000 the previous week. Economists polled by Thomson Reuters had predicted 540,000 initial jobless claims.

Continuing jobless claims for the week ended Sept. 26 came in at 6.040 million after a revised 6.112 million the previous week. Economists polled by Thomson Reuters had predicted 6.100 million continuing jobless claims.

Wholesale sales rose 1.0% in August, after a revised 0.6% rise in July. Economists polled by Thomson had predicted a 0.7% uptick.

Wholesale inventories fell 1.3% in August following a revised 1.6% drop the previous month. Economists polled by Thomson Reuters had predicted a 1.0% decline.

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