News and Information from Bond Buyer

Top rated municipal bonds were stronger on Friday, according to traders, as yields fell by as much as four basis points in an abbreviated trading session.

Massachusetts lawmakers send Gov. Charlie Baker a $39.1 billion budget amid ever-widening revenue gap projections.

Pennsylvania's legislature sent Gov. Tom Wolf a $31.5B on-time budget. All that's needed is $1.2 billion to balance it.

According to the ISM's monthly report on business, the ISM index increased to 53.2 in June from 51.3 in May.

Puerto Rico was poised to pay less than a fifth of the guaranteed debt due on Friday, with none of the payment going to the general obligation debt, according to sources.

S&P Global Ratings said it lowered its long-term rating to A-plus from AA-minus on the University of Illinois Board of Trustees' outstanding auxiliaries facilities system revenue bonds and certificates of participation, issued on behalf of the University of Illinois.

S&P Global Ratings said it has lowered its ratings on the Puerto Rico Electric Power Authority's (PREPA) approximately $8.3 billion to D from CC.

Jul. 1, 2016 Far West: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Alaska Aa1/AA+/AAA 0.66 1.13 1.67 2.35 California Aa3/AA+/A+ 0.57 0.97 1.54 2.12 Hawaii Aa2/AA/AA 0.55 0.96 1.49 2.18 Idaho Aa1/AA+/AA+ 0.52 0.98 1.52 2.21 Montana Aa1/AA/AA+ 0.52 0.97 1.53 2.23 Nevada Aa2/AA/AA+ 0.56 1 1.52 2.24 Oregon Aa1/AA+/AA+ 0.54 0.92 1.39 2.07 Washington Aa1/AA+/AA+ 0.57 1.05 1.61 2.3 Wyoming NR/AAA/NR 0.52 0.94 1.44 2.12

6/30/2016 6/23/2016 State # Iss Amount ($000) # Iss Amount ($000) Chg in Amt ($000) Alaska 0 0 0 $0 $0 California 6 139370 12 246,605 -107,235 Hawaii 0 0 0 0 0 Idaho 1 30000 2 108,820 -78,820 Montana 1 8060 0 0 8,060 Nevada 0 0 0 0 0 Oregon 2 77000 0 0 77,000 Washington 1 5500 6 1,361,050 -1,355,550 Wyoming 0 0 0 0 0

Tuesday, July 5 Issuer St Description Amount

Tuesday, July 5 Issuer St Description Amount

Friday, July 1 Issuer St Description Amount

ARKANSAS

ALABAMA

Gov. Alejandro Garcia Padilla late Thursday invoked Puerto Rico’s Moratorium Act on the payment of general obligation bonds and obligations of other public entities, opening the door to making partial payments on about $2 billion of debt due Friday.

Illinois lawmakers passed a six-month stopgap spending plan Thursday that will ensure schools open this fall and state services continue through the end of the year. The plan now awaits approval from Gov. Bruce Rauner.

In the week ended June 30, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell five basis points to 3.75% from 3.80% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Government

President Obama signed the Puerto Rico relief bill Thursday, paving the way for the appointment of an oversight board and the first steps in what legislators and observers agree will be a long process of bolstering the commonwealth’s fiscal health.

Municipal bonds finished steady to weaker on Thursday, traders said, as they saw the first-half come to an end on the last full trading session ahead of Friday’s early dismissal and Monday’s full market close.