News and Information from Bond Buyer

Triple-A general obligation bonds reached the most expensive level relative to Treasuries since 2011 as munis outperformed government bonds following signs of a pause in tension between Ukraine and Russia.

Government

President's Obama $3.9 trillion fiscal 2015 budget, released Tuesday, proposed capping the value of the tax exemption for municipal bond interest at 28%, which market participants complain would amount to an unprecedented tax on municipal bonds.

President Obama plans during the next two months to send Congress draft legislation for a four-year, $302 billion reauthorization of the surface transportation funding program, Transportation Secretary Anthony Foxx told reporters Tuesday during a briefing on the fiscal 2015 budget.

February net revenues in Puerto Rico's General Fund came in 8.5% above projections.

Moody's Investors Service has placed the rating on the California Housing Finance Agency's multifamily revenue bonds on review for upgrade.

Fitch Ratings has assigned a BB rating to the commonwealth of Puerto Rico's up to $3.5 billion general obligation bonds of 2014, Series A.

Standard & Poor's Ratings Services said it raised its school issuer credit rating on Montgomery Independent School District, Texas' general obligation debt one notch to AA-minus from A-plus.

Moody's Investors Service said it has downgraded to Baa3 from Baa1 the long-term bond rating assigned to Arnot Ogden Medical Center, N.Y.'s $26.4 million of outstanding bonds issued by the Chemung County Industrial Development Agency.

Municipal bond investors who have been stuck in a market yearning for new issuance got a taste of new buying opportunities Tuesday.

The Hawaii Senate is expected to vote on a proposal to issue $50 million in special purpose revenue bonds to support plans by Florida-based BioTork Hawaii LLC to turn agricultural waste into biofuel and animal feed.

Kansas City, Mo. will borrow $124 million next week to raise financing needed for its long planned $114 million downtown street car project and restructure debt to give it budgetary breathing room to strengthen its pension funds.

Georgia Gov. Nathan Deal applauded Monday's U.S. Supreme Court decision to have the Department of Justice file a brief in the water wars case with Florida.

Last year's government shutdown brought 8 million fewer visitors to national parks, costing the parks and surrounding communities an estimated $414 million, according to a federal study.

Massachusetts Gov. Deval Patrick announced $100 million in renovations to Boston's Logan Airport, to be funded through Massport's capital plan.

Cranston, R.I., Mayor Allan Fung, who cemented a pension overhaul package for his city, said the proposed state-level settlement burdens communities.

Puerto Rico Gov. García Padilla on Tuesday authorized Puerto Rico to sell up to $3.5 billion in general obligation bonds with possible New York court oversight.

The municipal market erased some gains Tuesday morning as issuers supplied new bonds to the market and tensions in Eastern Europe paused.

The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.045% high yield, a price of 99.996500.

The Treasury Department Tuesday auctioned $25 billion of 364-day bills at a 0.120% high yield, a price of 99.878667.