News and Information from Bond Buyer

The Chicago Public Schools’ cash crisis triggered a new downgrade that market participants say could scare off some buyers and further drive up its already steep spread premiums.

Top-quality municipal bonds were unchanged at mid-session, according to traders, as the market was preparing to wind up business for the holiday week.

The Treasury Department Tuesday auctioned $45 billion of four-week bills at a 0.195, % high yield, a price of 99.984833.

Indicator Last Report Forecast Actual GDP Q2.: +3.9% Q3.: +1.9% Q3.: +2.0% Final Sales Q2.: +3.9% Q3.: +2.8% Q3.: +2.7% Existing Home Sales Oct.: 5.32M Nov.: 5.37M Nov.: 4.76M

Service sector activity "remained subdued in December," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

Manufacturing activity in the central Atlantic region "grew modestly in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index gained to positive 6 in December from negative 3 in November.

Existing home sales fell 10.5% to a seasonally adjusted 4.76 million-unit rate in November from a downwardly revised 5.32 million pace the previous month, the National Association of Realtors announced Tuesday.

As this year ends, market sentiment, as measured by Municipal Market Data, is more subdued than usual. We can think of a few possible reasons.

Municipal bond traders are set to see only a handful of deals come to market on Tuesday, as they prepare to finish up the week's business ahead of the last full trading session of the week on Wednesday.

The region's non-manufacturing sector gained in December, as the general business conditions index rose to 35.3 from 26.3 in November, this month's Federal Reserve Bank of Philadelphia Report on Business indicates.

Tuesday, December 22 Issuer St Description Amount

Tuesday, December 22 Issuer St Description Amount

Wednesday, December 23 Issuer St Description Amount

Week Of December 21 Issuer St Description Amount

MINNESOTA

ARKANSAS

Dec. 22, 2015 Southwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Arizona Aa3/AA+/NR 0.55 1.41 2.18 3.08 Arkansas Aa1/AA/NR 0.52 1.31 2.01 2.9 Colorado Aa1/AA/NR 0.52 1.37 2.11 3.03 Kansas Aa1/AA+/NR 0.5 1.37 2.11 2.99 New Mexico Aaa/AA+/NR 0.5 1.31 2.02 2.93 Oklahoma Aa2/AA+/AA+ 0.54 1.4 2.13 3.03 Texas Aaa/AAA/AAA 0.53 1.36 2.08 2.98 Utah Aaa/AAA/AAA 0.5 1.25 1.92 2.81

12/21/2015 12/14/2015 State Amount ($000s) Iss Amount ($000s) Chg in Amt ($000s) Arizona 1 $5,990 3 40,125 -$34,135 Arkansas 0 0 3 14,720 -14,720 Colorado 0 0 2 77,440 -77,440 Kansas 0 0 5 18,690 -18,690 New Mexico 0 0 0 0 0 Oklahoma 8 15,650 2 13,840 1,810 Texas 5 241,905 31 524,135 -282,230 Utah 0 0 3 145,020 -145,020

A Dec. 19 deadline for Atlantic City to pay the Borgata $62 million in tax refunds has passed and now the casino giant is asking a judge to order the payment.

Smooth sailing is seen for toll road credits in 2016, as positive performance trends are expected to continue in the new year, Fitch says.