News and Information from Bond Buyer

Bonds issued to finance student loans will not become taxable if their issuer takes action to cease being a qualified scholarship funding corporation, the Internal Revenue Service said.

A division of Arbor Research & Trading, LLC, is signing up investors and lining up potential issuers for an attempt to “revolutionize and rejuvenate” the variable rate demand obligation market.

House Republican leaders are putting together an $8 billion, five-month bailout of the Highway Trust Fund through the end of 2015.

Moody’s upgraded New York MTA’s transportation revenue bonds to A1 from A2, ahead of its $478 million sale scheduled for next week.

Washington State's budget boosted education spending, a positive development for school districts and public universities, Moody's Investors Service said.

Prices of top-quality municipal bonds were weaker at mid-session, traders said, with yields on some maturities rising by as much as two basis points and the muni market prepares for a busy week that features three deals over $1B, one of which comes from Chicago.

Plans to reduce U.S. Army ranks by 40,000 soldiers add pressure to military communities and raise risk for bonds used to privatize base housing, experts said.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were mixed, as the three-months incurred a 0.015% high rate, unchanged from 0.015% the prior week, and the six-months incurred a 0.100% high rate, off from 0.085% the week before.

The Treasury Department said Monday it will sell $40 billion of four-week discount bills Tuesday.

Long Island's Nassau County is on a pace to miss budget projections for sales tax receipts even after an increase for the first half of 2015.

Monday, July 13 Issuer St Description Amount

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Week Of July 13 Issuer St Description Amount

Day Indicator Last Report Forecast Monday Treasury Budget May: -$82.4B June: +$51.0B Tuesday Import Prices May: +1.3% June: +0.1% Tuesday Export Prices May: +0.6% June: na Tuesday Retail Sales May: +1.2% June: +0.3% Tuesday ex-Autos May: +1.0% June: +0.5% Tuesday Business Inventories April: +0.4% May: +0.3% Wednesday Empire State Manufacturing June: -1.98 July: +3.5 Wednesday PPI May: +0.5% June: +0.2% Wednesday PPI Core May: +0.1% June: +0.1% Wednesday Industrial Production May: -0.2% June: +0.2% Wednesday Capacity Utilization May: 78.1 June: 78.1 Thursday Initial Jobless Claims 7/4: 297,000 7/11: 285,000 Thursday Continuing Claims 6/27: 2.334M 7/4: 2.295 Thursday NAHB Housing Index June: 59 July: 59 Thursday Philly Fed Manufacturing June: 15.2 July: 12.0 Friday CPI May: +0.4% June: +0.3% Friday CPI Core May: +0.1% June: +0.2% Friday Housing Starts May: 1.036M June: 1.114M Friday Building Permits May: 1.250M June: 1.150M Friday Michigan Sentiment June: 96.1 July: 96.4 Friday Current Conditions June: 108.9 July: 101.1 Friday Expectations June: 87.8 July: 87.0

Jul. 13, 2015 Northeast: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Connecticut Aa3/AA/AA 0.37 1.62 2.74 3.74 Delaware Aaa/AAA/AAA 0.3 1.29 2.24 3.23 Maine Aa2/AA/AA 0.31 1.39 2.34 3.34 Maryland Aaa/AAA/AAA 0.3 1.32 2.27 3.24 Massachusetts Aa1/AA+/AA+ 0.32 1.38 2.42 3.46 New Hampshire Aa1/AA/AA+ 0.31 1.37 2.34 3.36 New Jersey A1/A/A 0.95 2.2 3.2 4.17 New York Aa1/AA+/AA+ 0.3 1.31 2.3 3.4 Pennsylvania Aa3/AA+/AA+ 0.52 1.78 2.87 3.86 Rhode Island Aa2/AA/AA 0.38 1.54 2.61 3.62 Vermont Aaa/AA+/AAA 0.3 1.31 2.3 3.27 Dist. of Columbia Aa1/AA/AA 0.34 1.4 2.45 3.47 Puerto Rico B2/BB/BB+ 8.6 9.75 10.05 8.69

IOWA

ARIZONA

7/10/2015 7/3/2015 State # Iss Amount ($000s) # Iss Amount ($000s) Chg in Amt ($000s) Connecticut 4 $61,780 $6 $126,815 -$65,035 Delaware 0 0 0 0 0 Maine 1 27,760 0 0 27,760 Maryland 3 663,625 2 500,000 163,625 Massachusetts 5 144,630 10 323,829 ?179,199 New Hampshire 0 0 1 1,110 ?1,110 New Jersey 7 82,666 2 23,293 59,373 New York 19 1,364,291 15 264,749 1,099,542 Pennsylvania 11 262,395 13 285,195 ?22,800 Rhode Island 2 71,345 4 131,795 ?60,450 Vermont 0 0 0 0 0 District of Columbia 0 0 0 0 0 Puerto Rico 0 0 0 0 0

Chicago Public Schools and its teachers’ fund have ended negotiations over the district’s request to defer $500 million of its fiscal 2016 contribution, the two announced in a joint statement.

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