News and Information from Bond Buyer

Municipal bond traders are waiting to see more volume hit the market on Tuesday, led by the institutional pricing of Connecticut's general obligation bonds.

Chicago would raise its contributions to its laborers’ pension fund by at least 30% annually under a new plan to stabilize the fund and steer it away from its path to insolvency.

The region's non-manufacturing sector slipped in May, as the general business conditions index declined to 4.6 from 13.5 in April, this month's Federal Reserve Bank of Philadelphia Report on Business indicates.

Daniel Berger, Senior Market Strategist at Municipal Market Data, talks about the recent rally in municipal bonds which has brought long-term yields down to record lows. He talks about continuing demand from retail investors in light of the upcoming Summer redemption season and he discusses the allure that the American tax-exempt market has for overseas buyers. He outlines the recent spread compression in quality credits and also looks at some of the market’s outliers -- Puerto Rico and Chicago.

May. 24, 2016 Southwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Arizona Aa3/AA+/NR 0.61 1.15 1.85 2.67 Arkansas Aa1/AA/NR 0.57 1.07 1.72 2.52 Colorado Aa1/AA/NR 0.58 1.13 1.81 2.63 Kansas Aa2/AA/NR 0.58 1.12 1.81 2.61 New Mexico Aaa/AA+/NR 0.58 1.07 1.73 2.55 Oklahoma Aa2/AA+/AA+ 0.58 1.13 1.83 2.65 Texas Aaa/AAA/AAA 0.59 1.11 1.79 2.52 Utah Aaa/AAA/AAA 0.56 1.01 1.62 2.42

5/23/2016 5/16/2016 State Amount ($000s) Iss Amount ($000s) Chg in Amt ($000s) Arizona 6 $177,855 5 $150,310 $27,545 Arkansas 4 18,805 7 114,570 -95,765 Colorado 3 39,170 1 6,200 32,970 Kansas 6 106,045 9 126,730 -20,685 New Mexico 2 36,810 4 337,785 -300,975 Oklahoma 16 15,585 34 54,550 -38,965 Texas 47 1,650,715 46 1,534,902 115,813 Utah 1 31,650 1 31,650 0

Tuesday, May 24 Issuer St Description Amount

Tuesday, May 24 Issuer St Description Amount

Week Of May 23 Issuer St Description Amount

Week Of May 23 Issuer St Description Amount

ALABAMA

IOWA

Puerto Rico Gov. Alejandro García Padilla is proposing a budget for the coming fiscal year with 86% less money allocated to paying debt service than the approved current-year budget.

Government

Municipal market participants are urging the Treasury Department and Internal Revenue Service to withdraw their proposed rules on political subdivisions, claiming they are unnecessary, possibly illegal, and would disrupt the municipal bond market.

Minnesota lawmakers won’t immediately be called back to work to tackle a capital budget and long-term transportation funding plan after failing to act on both fronts before their session drew to close at midnight, Gov. Market Dayton said Monday.

The New York State Thruway Authority should develop a better financial plan for replacing the 61-year old Tappan Zee Bridge, according to the State Comptroller’s Office.

Arkansas lawmakers ended a special session Monday with approval of a bill to raise $50 million for highways, allowing the state to receive $200 million in federal funds.

California Gov. Jerry Brown's recent executive order about state water restrictions is a credit positive for local water agencies, according to Moody’s Investors Service.

Chicago heads into the market with $350 million of Midway Airport revenue paper, bolstered by an upgrade and viewed as well-insulated from the city’s financial troubles.