CHICAGO - Barring any significant shift in the yield curve or in investor interest, the University of Minnesota will enter the market as soon as today with $35 million of taxable, general obligation Build America Bonds that officials believe will mark the first public offering of securities under the new federal program.

The university will apply for the direct-pay interest subsidy from the federal government with about $2 million in net present value savings expected, or $100,000 a year, based on current market conditions and the spread between taxable and tax-exempt securities further out on the yield curve. With Treasuries trading far enough below municipals on the long end, that is where the most savings can be achieved by using the program.

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