News and Information from Bond Buyer

*Update: S&P downgrades Puerto Rico to BB-plus (Feb. 4)

The Federal Open Market Committee will continue cutting asset purchases by $10 billion each meeting and bring the QE3 program to an end later this year, according to Atlanta Federal Reserve Bank President Dennis Lockhart.

LAUSD has moved on to Phase 2 of a $1 billion bond-funded program to provide all students with iPads with the purchase of 45,000 devices last week.

Municipal bonds were sluggish Wednesday afternoon even as technical indications showed opportunity in the market. Traders speculated what the impact of a Puerto Rico downgrade would have on prices.

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%, "which is likely during the first half of the year," Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser said Wednesday.

California's income tax collections were mostly on target for the month of January, according to a report from the Legislative Analyst's Office.

Fitch Ratings said it has downgraded Cleveland, Ohio's approximately $786.9 million of outstanding airport system revenue bonds to BBB-plus from A-minus.

Puerto Rico bonds were trading on pace with levels seen in recent weeks, market participants said, lending credibility to the argument by some that a downgrade to junk had been long-anticipated by the municipal market.

Attorneys for Georgia have asked the U.S. Supreme Court not to entertain a lawsuit from Florida over water rights between the states.

Pittsburgh Mayor Bill Peduto inherits a city on the upswing, but wants it to remain under state oversight while he works out a long-term financial plan.

About 5,232,000 online job postings appeared on leading Internet job boards in January, a decrease of 56,800 from December, the Conference Board reported Wednesday.

The U.S. services sector expanded at a slightly faster pace in January as the non-manufacturing business activity composite index was 54.0 in the month, compared to 53.0 in December, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.

The hot Texas economy is spurring operators of the state's airports and seaports to provide new infrastructure to accommodate the growing state.

The Treasury Department will sell $16 billion 30 year bonds on Thursday, Feb. 13, $24 billion 10 year notes on Wednesday, Feb.12, and $30 billion 3-year notes on Tuesday, Feb. 11, in its quarterly refunding.

Indicator Last Report Forecast Actual Factory Orders Nov.: +1.5% Dec.: -1.6% Dec.: -1.5%

Feb. 5, 2014 Midwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Illinois A3/A+/A+ 0.58 2.16 3.73 5.06 Indiana Aaa/AAA/AA+ 0.18 1.18 2.67 3.99 Iowa Aaa/AAA/AAA 0.18 1.18 2.65 3.97 Michigan Aa2/AA/AA 0.25 1.34 2.91 4.23 Minnesota Aa1/AA+/AA+ 0.18 1.14 2.6 3.91 Missouri Aaa/AAA/AAA 0.18 1.11 2.53 3.85 Nebraska NR/AAA/AA+ 0.2 1.24 2.74 4.05 North Dakota Aa1/AA+/NR 0.2 1.21 2.68 4.02 Ohio Aa1/AA+/AA+ 0.2 1.16 2.7 4.06 South Dakota NR/AA+/NR 0.21 1.28 2.79 4.12 Wisconsin Aa2/AA/AA 0.2 1.23 2.75 4.08

2/4/2014 1/28/2014 State # Iss Amount ($000) # Iss Amount ($000) Chg in Amt ($000s) Illinois 13 $1,296,845 13 $1,778,795 -$481,950 Indiana 4 40,365 4 46,615 -6,250 Iowa 5 112,565 4 106,425 6,140 Michigan 8 41,245 4 18,545 22,700 Minnesota 11 95,690 13 545,125 -449,435 Missouri 5 67,550 2 62,750 4,800 Nebraska 0 0 1 8,900 -8,900 North Dakota 2 13,340 0 0 13,340 Ohio 2 152,565 5 129,944 22,621 South Dakota 0 0 0 0 0 Wisconsin 10 52,765 8 270,855 -218,090

Wednesday, February 5 Issuer St Description Amount

Wednesday, February 5 Issuer St Description Amount

Week Of February 3 Issuer St Description Amount