News and Information from Bond Buyer

The municipal market began to pick up the pace from a slow start to the week Tuesday afternoon as pockets of demand arose in the short and long end of the yield curve.

Two groups of Jefferson County, Ala., sewer system customers appealed the county's Chapter 9 exit plan, and the county announced close of the sale of sewer warrants to pay creditors for the plan.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were lower, as the three-months incurred a 0.075% high rate, down from 0.080% the prior week, and the six-months incurred a 0.100% high rate, off from 0.105% the week before.

Boston's MBTA will launch late-night service in the spring, said Massachusetts Gov. Deval Patrick, who found $20 million from state funding and corporate pledges.

Connecticut's sale of special tax obligation bonds generated $173.4 million of retail orders, which Treasurer Denise Nappier said was the highest under the program.

Rhode Island this week became the first state government in the nation to halt sales tax collections on original and limited edition artwork.

Detroit is eligible for bankruptcy protection, the federal judge overseeing the case ruled Tuesday, The Bond Buyer reports. It means Detroit can legally enter into Chapter 9, launching the largest municipal bankruptcy to date in the U.S. The city says it has $18 billion of debt it will try to restructure over the course of the case.

The number of municipal bond issuers rated as "speculative" by Moody's Investors Service has grown by 27% since 2008 and will likely grow further but remain a small part of the market, the rating agency said in its annual report on junk bond issuers.

During October, Puerto Rico bond prices recouped a portion of their late-summer plunge that pushed yields above 10% for certain bonds. The rebound followed efforts by Commonwealth officials to address the island's wide-ranging fiscal challenges, plus speculation that the federal government might step in to assist Puerto Rico.

Fitch Ratings said it expects the financial pressures that local governments have experienced over the course of the economic downturn will continue into the next year.

Rhode Island this week became the first state government in the nation to halt sales tax collections on original and limited edition artwork. Rhode Island’s tax changes that took effect Dec. 1 allow shoppers who purchase original or limited editions of art anywhere in the Ocean State to be except from paying the state’s 7% sales tax.

The market for tax-exempt municipals opened steady to somewhat firmer as traders eager for paper prepare for a larger slate of deals this week.

The Treasury Department Tuesday auctioned $45 billion of four-week bills at a 0.030% high yield, a price of 99.997667.

Moody's Investors Service said it has assigned an A3 rating to Marinette, Wis.'s $2.9 million waterworks system revenue bonds, Series 2014A, and downgraded the city's parity water revenue debt to A3 from A1.

A delay in the finalizing of Harrisburg, Pa.'s $260 million parking-asset lease has also pushed back the sale of the city's incinerator to Lancaster County.

The Supreme Court declined on Monday to hear challenges from Amazon and Overstock to a New York Internet sales tax law, The Bond Buyer reports. The Supreme Court justices did not give any reason for declining to hear the cases — Amazon.com v. New York Taxation Department and Overstock.com Inc., v. New York Taxation Department.

Ohio municipalities face steep revenue losses — and likely constraints on borrowing ability — under a proposed overhaul of the state's local income tax system, The Bond Buyer reports.

Living wills would provide a failing financial institutions with a "first and most preferable option" to government assistance, Richmond Federal Reserve Bank President Jeffrey Lacker said Tuesday.

Ohio municipalities face steep revenue losses — and likely constraints on borrowing ability — under a proposed overhaul of the state's local income tax system.

New York City business activity grew at a much quicker pace in November, as the current business conditions index rose to 69.5 from 59.3 in October, the Institute for Supply Management-New York's Report on Business index, released Tuesday, indicated.