Prices were unchanged yesterday as the market took on another wave of new issues while dealer holdings continued to grow ahead of Friday's producer price report for May.

Tax-exempt traders reported dull action for the third session in-a-row. The increased supply could prove a boon if the market rallies, but would help to sink prices if Friday's report shows inflation growing more than expected.

Investors fear that the Federal Reserve will tighten monetary policy if the rate for the core producer price index rises by 0.4% or more.

Tax-exempts closed flat yesterday, despite gains in the Treasury sector, prompted when the government futures contract eased through some resistance points.

In the debt futures market, the September municipal contract settled up 10/32, to 100.05.

The September MOB spread widened to negative 345 from negative 332 Tuesday.

Despite worry over the inflation report and heavy new issuance, underwriters have reported generally good results on negotiated issues at slight concessions to buyers.

A quick glance at this week's high-grade competitive pricings also reveals some solid underlying strength.

Market observers noted that Atlanta, Ga., offered bonds Monday at 5.50% in 2008, slightly off the triple-A scale. But Tuesday, deals held in at the same range or better. For example, Washington County, Md., earned a 5.40% yield in 2008 Tuesday and Arlington, Va., earned a 5.35% in 15 years.

The deals sold down to minimal balances. reflecting steady buyer demand.

Yesterday's competitive issues also reflected underlying strength at levels near those of the deals priced earlier in the week.

An issue of $120 million Washington Suburban Sanitary District, Md., unlimited tax bonds were reoffered at 5.40% in 2008 yesterday.

A Bear, Stearns & Co. group won the issue with a TIC of 5.186%.

The firm reported an unsold balance of $54 million late in the session.

Serials were priced to yield from 2.50% in 1994 to 5.55% in 2016.

The issue is rated Aa1 by Moody's and AA by Standard & Poor's.

In new-issue action in the short-term note market, Wisconsin awarded $350 million cash-flow operating notes, dated July 1, due June 15, 1994, to Goldman, Sachs & Co.

New Deals

Goldman took $250 million with a net interest cost of 2.634% and $1 00 million with a NIC of 2.623%. The notes were reoffered to investors at 2.55% net.

The notes are rated MIGI by Moody's and SP1-plus by Standard & Poor's.

The state's operating notes have received the highest ratings since the state began issuing them in 1983.

Frank Hoadley, Wisconsin's capital finance director, said proceeds from the note sale will be used to pay for the state's expenses in the first half of fiscal 1994. The debt will be paid off with allocated general fund revenues in the second half of the fiscal year, he said.

The combined weighted net interest cost of 2.63086% dethroned last year's NIC of 2.8911% as the best rate the state has ever received, Hoadley said. Last year, the state issued $450 million of notes.

The state was originally scheduled to sell $400 million of notes yesterday, but Hoadley said the issue was reduced because of strong revenues and cash-flow position.

In competitive action in the long-term sector, Morgan, Stanley & Co. won $160 million Dade County School District, Fla., unlimited tax general obligation refunding bonds with a true interest cost of 5.3492%. The firm reported an unsold balance of about $8.4 million late in the day.

Serial bonds were reoffered to investors at yields ranging from 2.50% in 1994 to 5.53% in 2008. The bonds are insured by AM-BAC and rated triple-A by Moody's and Standard & Poor's. Kidder, Peabody & Co. had the cover bid with a TIC of 5.363%. First Boston Corp. as sole manager won $154 million New York State various-purpose bonds with a TIC of 5.1830%.

First Boston reported an unsold balance of about $17.2 million.

Serials were reoffered to investors at yields ranging from 3.60% in 1994 to 5.70% in 2023.

The bonds are rated A by Moody's and A-minus by Standard & Poor's.

Merrill Lynch & Co. had the cover bid with a TIC of 5.22943%, followed by Chemical Securities Inc. with a TIC of 5.23986%.

Topping the negotiated slate, PaineWebber Inc. tentatively priced $270 million Houston, Tex., Water Conveyance System contract certificates of participation.

The offering included $9 million 1993A COPS priced to yield from 4.75% in 1999 to 5.65% in 2007.

The offering also contained $16 million 1993B maturities priced to yield from 4.40% in 1997 to 5.75% in 2007; $17 million Series 1993C serials priced to yield from 4.85% in 1999 to 5.75% in 2007; $25 million Series 1993D priced to yield from 4.40% in 1997 to 5.75% in 2007, and $25 million Series 1993E priced to yield from 2.60% in 1993 to 5.60% in 2008.

Also included were $31 million Series 1993F priced to yield from 2.60% in 1993 to 5.80% in 2008; $13.5 million Series 1993B priced to yield from 2.60% in 1993 to 5.75% in 2009: $13.5 million Series 1993G priced to yield from 2.60% in 1993 to 5.75% in 2009; $14 million Series 1993H priced to yield from 2.60% in 1993 to 5.95% in 2016; $10 million Series 19931 priced to yield from 2.60% in 1993 to 4.85% in 1999, and $111 million Series 1993J priced to yield from 5.50% in 2004 to 5.95% in 2015.

Capital appreciation bonds were priced to yield from 2.80% in 1993 to 5.55% in 2003.

The bonds are insured by AM-BAC Indemnity Corp. and rated triple-A by Moody's Investors Service and Standard & Poor's Corp.

Goldman, Sachs & Co. priced and repriced $213 million Michigan State Housing Development Authority rental housing revenue bonds.

At the repricing, serial bond yields were lowered by five basis points in 1995 and 1996, but raised by about two basis points in 2004 and by five basis points in 2005, 2006, and 2007.

The final reoffering included $162 million current coupon bonds priced at par to yield from 3.45% in 1995 to 5.70% in 2007. A 2017 term was priced at par to yield 5.875%, and a 2023 term was priced at par to yield 5.90%. There also was $26 million periodic auction reset securities and $26 million corresponding inverse floating rate securities that were not formally reoffered.

The bonds are insured by AM-BAC and rated triple-A by Moody's and Standard & Poor's.

J.P. Morgan Securities Inc. priced $153 million Lubbock Health Facilities Development Corp. hospital revenue bonds for the Methodist Hospital project.

The offering included $50 million fixed-rate securities priced to yield from 4.10% in 1996 to 5.40% in 2004. A 2013 term was priced as 55/8s to yield 5.85%, and a 2022 term was priced as 53/4s to yield 5.90%. There also was $103 million advanced refunding bonds priced to yield from 2.70% in 1993 to 5.73% in 2009. A 2013 term was priced as 51/2s to yield 5.838% and a 2019 term was priced as 51/4s to yield 5.848%.

Serial bonds are non-callable.

The bonds are insured by AM-BAC and rated triple-A by Moody's and Standard & Poor's.

Secondary Markets

The secondary market logged another boring day as traders wait for the markecto react to Friday's inflation report.

In secondary dollar bond trading, prices were quoted mostly unchanged, but some bonds rose 1/8 to 1/4 point.

Late in the day, Austin, Tex., Utility 55/8s of 2016 were quoted at 5.93% bid, 5.90% offered; Texas Municipal Power MBIA 51/4s of 2012 were quoted at 5.81% bid, 5.78% offered; and Chicago GO FGIC 55/8s of 2023 were quoted at 96-1/4 to yield 5.91%.

In short-term note trading, yields were mixed on the day.

In late trading, California Rans were quoted at 2.60% bid, 2.50% offered; New York State Trans were quoted at 2.20% bid, 2.15% offered; and Texas Trans were quoted at 2,25% bid, 2.20% offered.

April Hattori in Chicago contributed to this column.

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