News and Information from Bond Buyer

Senate Finance Committee chair Orrin Hatch, R-Utah, on Thursday called for Democrats and the administration to be more transparent and realistic, after proposing “unworkable” solutions to Puerto Rico’s crisis as Congress continues to work toward bipartisan legislation for the commonwealth.

Despite a $290 million funding increase for fiscal 2017, the taxation chairman of the American Bar Association on Thursday called on House and Senate appropriations committees to further increase funding to the Internal Revenue Service, which has been hampered in recent years by significant budget cuts.

Government

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, dropped two basis points to 4.08% from 4.10% in the previous week.

Moody’s Investors Service affirmed Chicago’s junk-bond-level general obligation rating, while also affirming low-investment-grade revenue bond ratings and maintaining negative outlooks.

The Louisiana State Bond Commission approved a $600 million general obligation refunding Thursday that will delay $81.6 million in bond payments this fiscal year and $30 million in fiscal 2017.

A Financial Industry Regulatory Authority arbitration panel this week approved the removal of a complaint about Puerto Rico bonds from a financial advisor’s record after concluding the advisor kept the investor adequately informed of the risks posed by the bonds throughout their seven-year relationship.

Top quality municipal bonds ended stronger on Thursday, according to traders, as the last of the week’s big new issue slate came to market.

More Illinois school districts are operating in the red, according to new data from the Illinois Board of Education.

Republican lawmakers from both the Senate and House introduced legislation on Thursday that would make the courts, rather than federal agencies, responsible for interpreting and determining the reasonableness of federal rules.

Standard & Poor's Ratings Services said it has revised its outlook on Michigan's general obligation bonds and appropriation-backed debt outstanding to stable from positive.

Seven cities remain in the running for a $40 million federal grant aimed at integrating high-tech with transportation operations.

Californians are gearing up for election season in what may prove to be “the year of the initiative,” with two explicitly bond-related questions already qualified for the November ballot and several more of interest to public finance likely to follow.

Moody’s Investors Service downgraded Houston’s general obligation bond rating one notch to Aa3 and retained a negative outlook as the nation’s fourth-largest city struggles amid falling oil prices and high fixed costs.

The Treasury Department sold $11 billion of inflation-indexed 9-year 10-month TIPs at a 0.315% high yield, an adjusted price of 102.986538, with a 5/8% coupon.

Top quality municipal bonds were stronger at mid-session, according to traders, and the Vanderbilt University Medical Center deal was priced for institutions.

The Treasury Department said it will auction $13 billion one-year 10-month 0.272% floating rate notes on Wednesday, March 23.

The Treasury Department said Thursday it will auction $34 billion 91-day bills and $28 billion 182-day discount bills Monday.

Indicator Last Report Forecast Actual Current Account Q3: -$129.9B Q4: -$118.0B Q4: -$125.3B Initial Jobless Claims 3/5: 258,000 3/12: 266,000 3/12: 265,000 Continuing Claims 2/27: 2.227M 3/5: 2.229M 3/5: 2.235M Philly Fed Manufacturing Feb.: -2.8 March: -1.5 March: 12.4 Leading Indicators Jan.: -0.2% Feb.: +0.2% Feb.: +0.1%

The composite index of Leading Economic Indicators was up 0.1% in February following a 0.2% drop in January, the Conference Board reported Thursday.