News and Information from Bond Buyer

Government

The municipal bond market stabilized as investors said the short-term sell-off after Federal Reserve Chairwoman Janet Yellen's comments on interest rates was overdone.

Pennsylvania's Department of Transportation will invite four teams to submit proposals for the rapid bridge replacement P3 project, said Commissioner Barry Schoch.

New York City will end the current year with a surplus of $2 billion, $244 million more than Mayor Bill de Blasio expects, according to the Independent Budget Office.

Illinois Gov. Pat Quinn says the state should permanently extend a 2011 "temporary" income tax increase that is set to expire next year, saying the alternative is dire cuts to education and state services

Moody's Investors Service downgraded Suffolk County, N.Y. general obligation debt to A3 from A2, citing continued use of one-time revenues and significant cash flow borrowing.

Standard & Poor's Ratings Services said it raised its rating on Palmyra-Eagle Area School District, Wis.' general obligation debt to AA-minus from A-plus.

The New York City Municipal Water Finance Authority sold $548 million refunding bonds, an increase of $68 million from the expected $480 million.

Standard & Poor's has upgraded the rating on San Jose-Evergreen Community College District's general obligation bonds based on its improved financial performance.

The University of California will bring $950 million of revenue bonds to market next week in a tax-exempt and taxable deal to fund construction projects throughout its campuses.

The Fix L.A. Coalition, a group of union and progressive organizations, released a report suggesting the city could substantially reduce the $204 million in bank and money management fees that it paid last year to Wall Street firms.

The prospect of a state budget that would divert $40 million of transit operating funds for debt service doesn't faze the New York MTA Chairman Thomas Prendergast.

Republican Greg Abbott is criticizing Democrat Wendy Davis' work as a bond attorney in their hard-fought campaign for governor of Texas and she is targeting Abbott's record as attorney general.

Detroit's proposed $120 million loan with Barclays, which would finance service improvements, advanced Tuesday after a key Michigan board approved the deal.

Grassroots pressure is building on Congress to pass a transportation funding bill this summer and prevent a halt in construction projects as the Highway Trust Fund approaches insolvency.

Investors were unfazed by signs of a rebounding economy as muni bonds began to stabilize Wednesday.

The Treasury Department auctioned $35 billion of five-year notes, with a 1 5/8% coupon, a 1.715% high yield, a price of 99.570515.

The Indianapolis Board of School Commissioners has authorized the potential refinancing of $59.6 million of Build America Bonds issued in 2010 because the subsidy payments to the issuer have been reduced due to sequestration.

Municipal bonds showed signs of stabilization after a five-day sell off as the market opened Wednesday.

The Treasury Department Wednesday auctioned $13 billion of one-year 10-month floating rate notes with a high discount margin of 0.069%, at a 0.045% spread, a price of 99.955121.