The municipal market finished another session weaker yesterday as many of the week's largest scheduled deals were priced in the new-issue market, including its largest slated taxable Build America Bonds transaction.Goldman, Sachs & Co. priced $375 million of electric and gas systems revenue BABs for San Antonio on behalf of CPS Energy. The bonds yield 5.99%, or 3.89% after the 35% federal subsidy, in 2039, priced at par. The deal was priced to yield 150 basis points over the comparable Treasury yield. The credit is rated Aa1 by Moody's Investors Service, AA by Standard & Poor's, and AA-plus by Fitch Ratings.
Traders said tax-exempt yields in the secondary market were higher by two or three basis points.