News and Information from Bond Buyer

Dec. 13, 2016 Southwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Arizona Aa3/AA-/NR 0.97 1.9 2.55 3.37 Arkansas Aa1/AA/NR 0.96 1.84 2.45 3.27 Colorado Aa1/AA/NR 0.95 1.87 2.51 3.34 Kansas Aa2/AA/NR 0.95 1.86 2.53 3.36 New Mexico Aa1/AA/NR 0.94 1.79 2.41 3.24 Oklahoma Aa2/AA+/AA+ 0.96 1.9 2.53 3.36 Texas Aaa/AAA/AAA 0.97 1.86 2.47 3.35 Utah Aaa/AAA/AAA 0.92 1.74 2.31 3.12

12/12/2016 12/5/2016 State Amount ($000s) Iss Amount ($000s) Chg in Amt ($000s) Arizona 1 $75,735 3 $488,145 -$412,410 Arkansas 1 3,610 5 37,550 -33,940 Colorado 7 260,645 13 444,295 -183,650 Kansas 8 41,688 14 123,143 -81,455 New Mexico 0 0 1 115,000 -115,000 Oklahoma 3 15,055 8 26,245 -11,190 Texas 40 619,765 47 623,750 -3,985 Utah 0 0 4 73,135 -73,135

Government

Congress approved a continuing resolution to keep federal programs and services funded through April 28, 2017 and a water bill, both of which would provide $170 million for Flint, Mich., and other localities with contaminated water.

Top-rated municipal bonds finished weaker on Monday, according to traders, who are facing a smaller than usual $4 billion primary calendar while the Federal Reserve gets set to meet in Washington.

Otero County, N.M. disclosed the IRS said its bonds did not comply with tax requirements.

Former Miami budget director Michael Boudreaux plans to ask a federal district court by Jan. 3 to vacate a jury’s verdict that he was guilty of securities fraud, according to his lawyer.

Minneapolis-based investment bank Dougherty & Co. LLC will extend its trading and sales reach with the acquisition of fellow Minneapolis-based municipal broker-dealer Cronin & Co. Inc.

MultiCare Health System, a not-for-profit health system based in Tacoma, Wash., has reached a deal to purchase the for-profit Rockwood Health System for $425 million and will finance a large portion of it with bonds.

A new $7.3 billion 2017 spending plan by the Port Authority of New York and New Jersey maintains debt service levels while also investing in major capital projects.

Indicator Last Report Forecast Actual Budget Statement Oct.: -$64.5B Nov.: -$135.0B Nov.: -$136.7B

Facing pressure from Gov. Andrew Cuomo, officials from New York’s Metropolitan Transportation Authority are targeting an opening of the long-delayed Second Avenue subway line by the end of the month.

The federal government ran a $136.7 billion deficit in November, the Treasury Department reported Monday.

The high tender rate for the Treasury Department's latest 91-day discount bills was 0.530%, up from 0.490% the prior week.

For the second year in a row, Texas expects lower bond volume from state agencies, universities and conduits, but outstanding debt continues to grow.

The Treasury Department auctioned $20 billion of 9-year 11-month notes with a 2% coupon at a 2.485% high yield, a price of 95.758350.

The municipal industry was rocked by a selloff that left fund managers licking their wounds.

The primary muni market has been volatile the past month since the election. Now with 2016 almost over, the Federal Open Market Committee is set to meet on Wednesday with a bump in interest rates widely expected, which would be the first since last December. In the latest installment of Muni Minute, we preview the Fed meeting and speculate on what could follow from the FOMC in 2017. 

Louisiana State Treasurer John Kennedy handily defeated his Democratic opponent with 61% of the vote in Saturday’s runoff election, in his third attempt for a U.S. Senate seat.

Top-rated municipal bonds were weaker at mid-session, according to traders, who are facing a smaller than usual $4 billion primary calendar as the Federal Reserve gets set to meet in Washington.