WASHINGTON -- President Bush yesterday signed into law a $151 billion highway and mass transit program that bond analysts say will increase municipal bond issuance by billions of dollars and spawn a cottage industry of Wall Street financiers in search of creative forms of transportation financing.

The most immediate spur to the municipal bond market will be increased issuance by states next year as they seek to raise their 20% matching share for the $11 billion of federal highway funds provided in fiscal 1992 under the bill, according to the Public Securities Association.

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