News and Information from Bond Buyer

Municipal bonds strengthened across the entirety of the yield curve Tuesday as the market showed signs of life amid concerns that the federal reserve will slow its bond buyback program.

Government

Discount bonds performed worse because of the dreaded de minimis rule, under which buyers pay taxes on the gain at maturity at the ordinary income rate when the discount is large. But there is a silver lining — taking a tax-loss can ease the pain.

Angela Spaccia, former Bell, Calif. deputy city manager, was found guilty on 11 felony counts of defrauding the city of millions of dollars.

Standard & Poor's shifted its outlook on Illinois' general obligation outlook to "developing" from "negative" Tuesday following passage of a sweeping pension restructuring but warned the state is far from out of the woods fiscally.

Puerto Rico debt analysts saw some encouraging signs in the commonwealth's economic activity index, which rose in September and October, breaking a 10 month slide.

California revenues for the month of November came in below estimates, but year-to-date revenues are still positive, according to a report from State Controller John Chiang.

Build America Mutual Assurance Company, the startup bond insurer launched in July 2012, will offer its insurance on secondary market trades through alternative trading system TMC Bonds.

A bankruptcy judge's ruling in Detroit that pensions aren't a distinct class from other creditors could bolster movement in that direction in the San Bernardino bankruptcy.

Moody's will extend its stable outlook to the airport sector in 2014 as more passengers will provide more support for new money debt.

Rep. Steve Stivers, R-Ohio, is urging the Securities and Exchange Commission to clarify that its municipal advisor registration rule will permit dealers to provide tailored advice to issuers about municipal bonds and then underwrite those bond issues later.

Hartsfield-Jackson Atlanta International Airport soon begins searching for a new general manager to replace Louis Miller who retires Jan. 3.

As Illinois girds for a promised legal challenge, backers of the state's newly minted pension overhaul believe the legislation can pass constitutional muster by what it offers public sector workers in exchange for benefit cuts.

New York City general obligation bonds priced for institutions on Tuesday were received by the municipal market, which continued to firm from Monday.

California's recently proposed $25 billion water plan to restore the depleted Sacramento-San Joaquin Delta will include a mixture of state and federal funding, as well as several bond issues.

Several federal agencies have approved a final proprietar trading rule that exempts municipal bonds, something market participants asked for.

The Treasury Department Tuesday auctioned $30 billion of three-year notes with a 5/8% coupon at a 0.631% yield, a price of 99.982208.

State fiscal conditions are modestly improving in fiscal 2014, but for many states, rebuilding "remains slow and somewhat precarious," the National Association of State Budget Officers said in a report released Tuesday.

The Treasury Department Tuesday auctioned $40 billion of four-week bills at a 0.025% high yield, a price of 99.998056.