News and Information from Bond Buyer

A three-judge panel granted California a two-year extension on court-ordered efforts to reduce prison overcrowding reducing the likelihood the state will have to resort to early release.

Inadequate funding for transportation infrastructure in one of the biggest issues facing the United States, the Transportation Research Board said Tuesday.

The fiscal condition of pension systems for Chicago, its sister governments, Cook County, and the state's municipal pension fund deteriorated in 2012, a report said.

Municipal bonds appeared uninspired Tuesday afternoon, as yields remained unchanged as two of the week's biggest deals came to market.

Moody's Investors Service said it has upgraded the underlying rating on Chestnut Ridge School District, Pa.'s $17.3 million of outstanding parity debt to A1 from A2.

The Treasury Department Tuesday auctioned $30 billion of three-year notes with a 5/8% coupon at a 0.715% yield, a price of 99.734055.

The Oregon's State Debt Policy Advisory Commission said the state can issue up to $215 million in additional debt through fiscal 2015 without going over the recommended debt capacity, but urges prudence.

California revenue for the month of January was down from last year, but beat estimates in the state budget.

The Treasury Department Tuesday auctioned $8 billion of four-week bills at a 0.030% high yield, a price of 99.997667.

Municipal bond yields were unchanged Tuesday morning as Federal Reserve Chair Janet Yellen made her first presentation since replacing Ben Bernanke.

Fitch Ratings downgraded Puerto Rico's general obligation and related debt to the speculative grade BB from the investment grade BBB-minus on Tuesday morning.

Fitch Ratings said it has downgraded the ratings for the commonwealth of Puerto Rico general obligation bonds to BB from BBB-minus.

Federal Reserve Chairman Janet Yellen said more work is needed to restore the labor market to health and pledged to maintain her predecessor's policies to ensure a return to full employment and stable prices.

Barclays Capital, RBC Capital Markets and Morgan Stanley will be lead managers for Puerto Rico's upcoming general obligation bond issue, the commonwealth said in an announcement Tuesday.

With the labor market improving, the Federal Open Market Committee should step up the pace of tapering its asset purchases and stop buying before the unemployment rate dips to 6.5%, Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser repeated Tuesday.

Federal Reserve Board Chair Janet Yellen told Congress she expects to "continuity" in the Federal Open Market Committee's policy and she "strongly" supports the strategy, which she helped to craft as a member of the panel.

The Government Development Bank for Puerto Rico Tuesday announced that the commonwealth of Puerto Rico expects to issue general obligation bonds in the near term to refinance certain outstanding obligations and address the government's liquidity needs and will detail its plans in a webcast Feb. 18.

Moody's Investors Service said it has downgraded to A2 from A1 Bingham County School District 55 (Blackfoot), Idaho's general obligation debt (Idaho State Bond Guaranty and Credit Enhancement Programs), affecting $6.1 million in rated debt.

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