Dealers focus on new issues; secondary prices little changed.

New issues dominated a holiday-minded municipal market yesterday, while secondary traders reported increased numbers of bid-wanted lists but few trades, and prices ended the session narrowly mixed.

In the primary market, an account headed by Dillon, Read & Co. tentatively priced $219 million New York State Thruway Authority local highway and bridge service contract bonds and was later able to reprice the deal to reduce serial yields five basis points on the longer serial maturities and shave term bond returns two basis points.

The offering included serials priced to yield from 5.80% in 1994 to 7.10% in 2003.

A 2010 term, containing $69.5 million of the loan, was priced at 99.086 as 7 1/4s to yield 7.34% and a $60 million 2011 term was priced at 86.821 as 6s to yield 7.28%.

The issue is rated A by Moody's Investors Service and BBB-plus by Standard & Poor's Corp.

In another negotiated financing, Smith Barney, Harris Upham & Co., as senior manager, tentatively priced and then repriced and restructured $169 million Lewis County Public Utility District No. 1, Wash., Cowlitz Falls hydroelectric project revenue bonds. Underwriters lowered yields five basis points in 1998-2004, raised the yield five basis points in 2024, eliminated the 2020 maturity and added 2012 and 2022 terms.

The final terms included serials priced to yield from 5.60% in 1995 to 6.90% in 2008.

Term bonds maturing 2012 and 2013 were priced to yield 7.022%. A $77.4 million 2022 term was priced to yield 7.125%. And a 2024 term was at a deeper discount to yield 7%.

The issue is rated double-A by Moody's and Standard & Poor's.

In competitive action, a Dillon, Read & Co. account won $120 million Maryland Department of Transportation consolidated transportation revenue bonds with a true interest cost of 6.301%.

The serial bonds were priced to yield from 5.10% in 1994 to 6.55% in 2006.

Dillon Read reported an unsold balance of $ 45 million late in the session.

The issue is rated Aa by Moody's, Standard & Poor's, and Fitch Investors Service.

A Prudential Securities Inc. group won $97 million Wisconsin general obligation bonds with a true interest cost of 6.472%.

Yields on the serial bonds ranged from 5% in 1993 to 6.75% in 2012.

The issue is rated double-A by Moody's and Standard & Poor's.

Prudential reported an unsold balance of $28 million near the close of trading.

In follow-through business, Goldman, Sachs & Co., senior manager for $602 million California taxable general obligation bonds, reported an unsold balance of $273 million.

Kidder, Peabody, senior manager for $48 million New York State Environmental Facilities Corp. state water pollution control revolving fund revenue bonds, reported an unsold balance of $8.6 million.

In light secondary activity, traders reported broad-based apathy ahead of the holiday weekend.

"There were some market inefficiencies and spreads that are not usually available," one trader said. "The problem was finding someone who was paying attention."

Traders reported steady bid-wanted lists of light to moderate size but bids were inconsistent, they added, and few of the lists changed hands.

In the debt futures market, the September municipal futures contract settled up 8/32 to 93.09 with the MOB spread calculated at negative 128.

In secondary dollar bond trading, last week's New Jersey Turnpike Authority 6.90s of 2014 were quoted 1/8 point lower on the day at 99 1/8-1/4 to yield 6.96%. The more seasoned Turnpike 7.20s of 2018 were 1/8 point lower at 102 3/4-7/8 to yield 6.69% to the 1999 par call.

In other dollar bond activity, Florida State Board of Education 7 1/4s of 2023 were unchanged at 102 3/4-103 1/4 to yield 6.86% to the 2004 par call. New York LGAC 7s of 2016 were unchanged at 98-98 1/2 to yield 7.13%. Puerto Rico Electric Power Authority 7s of 2021 were also unchanged at 99 1/8-1/4, where they returned 7.14%. And Colorado River Authority insured 6 5/8s of 2021 were unchanged at 96 3/4-97 1/4 to yield 6.84%.

Short-term note yields sank slightly on the day, traders said.

In late secondary trading, March California notes were quoted at 4.58% bid, 4.54% offered, while June notes were quoted at 4.63% bid, 4.60% offered. March New York State Trans were quoted at 5.14% bid, 5.11% offered, while New York City Tans were quoted at 4.70% bid, 4.60% offered near the end of cash trading.

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