The municipal market was slightly weaker again yesterday amid light to moderate secondary trading activity.

"We're cheapening up some again, but mostly on the short end," a trader in New York said. "We're also fairly flat out long again. Yesterday, we saw some cheapening out there for the first time in a while, but there's not really much movement out there today. I'd say we're maybe three or four basis points weaker inside of 20 years or so, and then flat the rest of the curve."

The Treasury market was mixed yesterday.

The benchmark 10-year note was quoted near the end of the session with a yield of 3.96% after opening at 3.95%.

The yield on the two-year was quoted near the end of the session at 1.11% after opening at 1.14%. The yield on the 30-year bond was quoted near the end of the session at 4.85% after opening at 4.84%.

The Municipal Market Data triple-A scale yielded 3.16% in 10 years and 3.85% in 20 years yesterday, compared with Tuesday's levels of 3.14% and 3.84%. The scale yielded 4.17% in 30 years yesterday, matching Tuesday's level.

Tuesday's triple-A muni scale in 10 years was at 77.8% of comparable Treasuries and 30-year munis were at 86.0%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 89.9% of the comparable London Interbank Offered Rate.

In the new-issue market yesterday, the Florida Department of Transportation competitively sold $211.3 million of turnpike revenue refunding bonds to JPMorgan with a true interest cost of 3.74%.

The bonds mature from 2011 through 2030, with coupons ranging from 3% in 2011 to 5% in 2030. None of the bonds were formally re-offered.

The bonds are callable at 101 in 2019, declining to par in 2020.

The credit is rated Aa3 by Moody's Investors Service and AA-minus by both Standard & Poor's and Fitch Ratings.

Bank of America Merrill Lynch priced $133.4 million of revenue bonds for the Illinois Finance Authority.

The bonds mature from 2011 through 2022, with term bonds in 2025 and 2030. Yields range from 1.55% with a 3% coupon in 2011 to 5.47% with a 5.25% coupon in 2030.

The bonds, which are callable at par in 2020, are rated A3 by Moody's.

Bank of America Merrill priced $114.4 million of hospital revenue bonds for Pennsylvania's South Fork Municipal Authority in three series.

Bonds from the $28.1 million series mature from 2010 through 2020, with a term bond in 2026.

Yields range from 1.82% with a 2.5% coupon in 2010 to 5.10% with a 6% coupon in 2026. The bonds are callable at par in 2020 and are insured by Assured Guaranty Corp.

Bonds from the $47.7 million series mature in 2035, yielding 5.45% with a 5.375% coupon. The bonds are callable at par in 2020 and are insured by Assured Guaranty.

Bonds from the $38.6 million series mature from 2010 through 2015, with term bonds in 2020, 2023, and 2029.

Yields range from 2.07% with a 2.5% coupon in 2010 to 5.72% with a 5.5% coupon in 2029.

The bonds are callable at par in 2020 and are uninsured.

The underlying credit is rated Baa1 by Moody's and BBB by Standard & Poor's.

Bank of America Merrill priced $97.2 million of revenue bonds for the Maine Health and Higher Educational Facilities Authority.

The bonds mature from 2011 through 2022, with term bonds in 2025, 2027, 2031, 2035, and 2040.

Yields range from 0.65% with a 2.5% coupon in 2011 to 5.07% with a 5% coupon in 2040.

The bonds, which are callable at par in 2020, are rated Aa3 by Moody's and AA by Fitch.

Bank of America Merrill Lynch priced $79.8 million of GOs for Rhode Island. Yields range from 0.72% in 2011 to 3.69% in 2020. According to a press release, $50 million of the bonds were sold to retail investors. The bonds are rated AA by both Standard & Poor's and Fitch.

Bank of America Merrill Lynch priced $77.9 million of energy system refunding revenue bonds for Tallahassee, Fla.

The bonds mature from 2016 through 2028, with yields ranging from 2.88% with a 3% coupon in 2016 to 4.46% with a 5% coupon in 2028.

The bonds, which are callable at par in 2020, are rated Aa3 by Moody's, AA by Standard & Poor's, and AA-minus by Fitch.

Bank of America Merrill also priced $63.5 million of refunding certificates of participation for Cleveland Stadium Project.

The debt matures from 2010 through 2020, with yields ranging from 1.42% with a 2% coupon in 2010 to 4.91% with a 4.75% coupon in 2020.

The COPs, which are not callable, are rated Baa1 by Moody's and A by Standard & Poor's.

Piper Jaffray & Co. priced $50.1 million of GOs for Weston, Conn., in two series.

Bonds from the $5.8 million Series A mature from 2012 through 2024, with yields ranging from 0.90% with a 3% coupon in 2012 to 3.70% with a 4% coupon in 2024. The bonds are callable at par in 2018.

Bonds from the $43.5 million Series B mature from 2010 through 2023, with yields ranging from 0.35% with 3% coupon in 2010 to 3.41% with 5% coupon in 2023. They are callable at par in 2020, except bonds maturing in 2020, which are callable at par in 2019.

Bonds from the $755,000 Series C mature in 2011, yielding 0.50% with a 4% coupon. The bonds are not callable.

The credit is rated Aaa by Moody's.

The economic calendar was light yesterday.

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