The primary market took center stage yesterday, as several of the week's largest scheduled transactions were priced against a backdrop of fairly light secondary market trading and unchanged to slightly elevated yield levels.

In the new-issue market, Merrill, Lynch & Co. priced $330 million of revenue bonds for Tennessee's Nashville-Davidson County Metropolitan Government in two series. Bonds from the $99 million Series A mature from 2015 through 2019, with term bonds in 2029, 2034, and 2039. Yields range from 3.21% with a 4% coupon in 2015 to 5.28% with a 5% coupon in 2039. Bonds from the $231.1 million Series B mature from 2015 through 2019, with term bonds in 2029, 2034, and 2039. Yields range from 3.21% with a 5.25% coupon in 2015 to 5.28% with a 5% coupon in 2039. All the bonds are callable at par in 2019. The credit is rated Aa2 by Moody's Investors Service and AA by both Standard & Poor's and Fitch Ratings.

Citi priced $261.5 million of dedicated tax fund bonds for New York's Metropolitan Transportation Authority. The bonds mature from 2010 through 2030, with a term bond in 2039. Yields range from 1.37% with a 2% coupon in 2010 to 5.70% with a 5.5% coupon in 2039. The bonds, which are callable at par in 2018, are rated AA by Standard & Poor's and A-plus by Fitch.

The Clark County, Nev., Water Reclamation District competitively sold $260 million of water reclamation bonds to JPMorgan in two series. Pricing information was not available by press time. Bonds from the larger $135 million series were sold with a true interest cost of 5.40%, and are slated to mature from 2013 through 2038. They are callable at par in 2019. Bonds from the smaller $125 million series were sold with a TIC of 5.38%, and are also slated to mature from 2013 through 2038. They are also callable at par in 2019. The credit is rated Aa2 by Moody's and AAA by Standard & Poor's.

Meanwhile, secondary market traders said tax-exempt yields were unchanged to higher by one or two basis points.

"We're definitely off a basis point or two in spots," a trader in Los Angeles said. "Whether you want to call the whole curve off, that's another story, but there's definitely a bit of a weaker tone out there, and you're seeing bonds cheapen up throughout a good deal of the curve."

"We were holding in fairly flat for a few days there, but with the supply we've gotten the past couple of sessions, it's only natural we start to cheapen up a bit again," a trader in New York said.

Trades reported by the Municipal Securities Rulemaking Board yesterday were flat to slightly weaker. Bonds from an interdealer trade of New York State 5s of 2026 yielded 5.18%, up one basis point from where they traded Tuesday. Bonds from an interdealer trade of insured Chicago 5.25s of 2028 yielded 5.26%, even with where they were sold Tuesday. Bonds from an interdealer trade of insured Los Angeles Unified School District 5s of 2023 yielded 5.05%, even with where they traded Tuesday. A dealer bought from a customer North Carolina Medical Care Commission 5s of 2039 at 5.75%, two basis points higher than where they were sold Tuesday.

The Treasury market showed some gains yesterday, however. The yield on the benchmark 10-year note, which opened at 3.01%, finished at 2.92%. The yield on the two-year note was quoted near the end of the session at 1.02% after opening at 1.04%. The yield on the 30-year bond, which opened at 3.72%, was quoted near the end of the session at 3.67%.

As of Tuesday's close, the triple-A scale in 10 years was at 110.7% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 131.3% of comparable Treasuries. Also, as of the close Tuesday, 30-year tax-exempt AAA-rated general obligation bonds were at 145.4% of the comparable London Interbank Offered Rate.

Elsewhere in the primary market, the Port Authority of New York and New Jersey competitively sold $100 million of consolidated bonds to Citi with a TIC of 4.36%. The bonds mature from 2010 through 2027, with a term bond in 2029. Yields range from 2.95% with a 5% coupon in 2015 to 4.90% with a 4.75% coupon in 2027. Bonds maturing from 2010 through 2014, and in 2016, 2020, and 2029 were not formally re-offered. The bonds are callable at par in 2019. The credit is rated Aa3 by Moody's and AA-minus by both Standard & Poor's and Fitch.

Merrill Lynch Tuesday priced $810.7 million of income tax-secured revenue bonds for the District of Columbia, up-sized from the originally planned $445 million. Pricing information was not available by press time Tuesday.

Bonds from the $500 million Series A mature from 2010 through 2027, with term bonds in 2030 and 2034. Yields range from 1.32% with a 4% coupon in 2010 to 5.32% with a 5.25% coupon in 2034. Bonds from the $310.7 million Series B mature from 2010 through 2027, with a term bond in 2029. Yields range from 1.32% with a 4% coupon in 2010 to 5.11% with a 5.25% coupon in 2029. All bonds are callable at par in 2019. The credit is rated Aa2 by Moody's, AAA by Standard & Poor's, and AA by Fitch.

Banc of America Securities LLC received the written award on $347.3 million of highway used tax revenue bonds for Oregon. The bonds mature from 2009 through 2029, with a term bond in 2033. Yields range from 1.20% with a 3% coupon in 2010 to 5.10% with a 5% coupon in 2033. The bonds, which are callable at par in 2019, are rated Aa2 by Moody's, AAA by Standard & Poor's, and AA by Fitch.

The economic calendar was light yesterday.

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