Over $2 billion of new issues hit the market yesterday, and prices were quoted slightly lower in light dealings.

Treasury prices opened about point lower in humdrum trading ahead of Friday's producer price report. and secondary tax-exempt prices followed suit.

By session's end, prices were quoted down 1/8 to 1/4 point on average, traders said. High-grade bonds were said to be unchanged.

In the debt futures market, the September municipal contract settled down 10/32, to 99.27.

The September MOB spread narrowed to negative 332 from negative 337 Monday as government prices fell further than tax-exempt prices.

Secondary trading was limited ahead of Friday's inflation report, which could push bond prices lower if the producer price index shows a marked increase. If inflation is lower than the market expects and Tuesday's consumer price report presents a similar picture, the markets are poised to rally.

Until then, municipal market players will concentrate on the deluge of new issuance.

Topping yesterday's negotiated calendar, PaineWebber Inc. tentatively priced $564 million various bonds for the Florida Orlando-Orange County Expressway Authority.

Negotiated Deals

The firm said it may reprice the issue early this morning, but no further details were available late yesterday afternoon.

The tentative offering included $428 million senior lien revenue refunding bonds priced to yield from 4.35% in 1998 to 5.50% in 2007. A 2010 term was priced as 5 3/8s to yield 5.62%; a 2013 term was priced as 5 1/4s to yield 5.67%; a 2018 term, containing $152 million of the loan, was priced as 5 1/2s to yield 5.72%; and a 2023 term was priced as 5 1/4s to yield 5.72%.

There also were $70 million junior lien revenue refunding bonds. priced with a 5.95% coupon to yield 6% in 2023.

The issue includes $15 million embedded cap bonds priced at par to yield 5.25% in 2005, and $52 million ARCS/LevRRs priced at par to yield 5.439%. A 2004 maturity was not formally reoffered.

The issue is rated triple-A by Moody's Investors Service, Standard & Poor's Corp., and Fitch Investors Service because of bond insurance.

Serial bonds and the 2010 and 2013 term maturities are insured by the AMBAC Indemnity Corp. The 2018 and 2023 term bonds are insured by the Financial Guaranty Insurance Co. The imbedded cap bonds are AMBAC-insured, while the ARCS/LevRRs are FGIC-insured. The junior lien revenue refunding bonds are not insured and rated A-minus by Standard & Poor's and Fitch.

In other action, a syndicate led by Commonwealth Securities and Investments Inc. tentatively priced $390 million revenue refunding bonds for the Harrisburg Authority of the Commonwealth of Pennsylvania.

The tentative offering included a 2015 bullet maturity priced at par to yield 6.25%.

The issue is rated AA by Standard & Poor's Corp.

Goldman, Sachs & Co. tentatively priced $272 million general obligation public improvement bonds for Richmond, Va.

The offering included $175 million Series 1993A bonds and $92 million Series 1993B bonds.

Non-callable serials were priced to yield from 2.70% in 1994 to 5.50% in 2009. A 2013 term was priced as 5 1/2s to yield 5.65%, a 2022 term was priced as 5 1/2s to yield 5.70%. There were also $6 million non-callable GO serial equipment notes, priced to yield from 2.70% in 1994 to 4.35% in 1998.

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

A syndicate led by Lehman Brothers priced and restructured $175 million Omaha Public Power District, Neb., Electric System revenue bonds.

At the restructuring, a 2014 term replaced a 2013 maturity.

The final reoffering included serial bonds priced to yield 5.45% in 2008, 5.50% in 2009, and 5.55% in 2010. A 2014 term, containing $69 million of the loan, was priced as 5 1/2s to yield 5.60% and a 2017 term was priced as 5 1/2s to yield 5.73%.

The offering is non-callable, except for the 2017 term.

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

Merrill Lynch priced and restructured $121 million New Hampshire Housing Finance Authority single-family mortgage revenue bonds.

At the restructuring, a 2016 maturity was added but not reoffered.

The offering included serials priced at par to yield from 3.50% in 1995 to 5.60% in 2006. A 2010 term was priced at par to yield 5.85%, a 2013 term was priced at par to yield 5.95%, and a 2025 term was priced at par to yield 6.05%.

Moody's rated the issue Aa.

Merrill Lynch priced, repriced, and restructured $115 million North Carolina Medical Care Commission hospital revenue refunding bonds for the Presbyterian Health Services Corp. project.

At the repricing, serial bond yields were lowered 20 basis points in 1993, while remaining serial yields were lowered by five basis points. Term bond yields were lowered by six basis points in 2020. Serial maturities were added in 2007 and 2008 and a 2013 term was replaced by a 2014 term.

The final reoffering included serial bonds priced to yield from 2.30% in 1993 to 5.65% in 2008. A 2014 term was priced as 5 1/2s to yield 5.75% and a 2020 term, containing $40 million of the loan, was priced as 5 1/2s to yield 5.84%.

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

Competitive Deals

An issue of $258 million University of California Regents housing system revenue bonds was won by a Bank of America group, which bid a true interest cost of 5.5765%. Serial bonds were reoffered to investors at yields ranging from 2.90% in 1994 to 5.65% in 2013. A 2014 term was priced as 5s to yield 5.65% and a 2018 term, containing $38 million of the loan, was priced as 5 1/2s but was not reoffered to investors.

The issue is insured by the Municipal Bond Investors Assurance Corp. and rated triple-A by Moody's Investors Service and Standard & Poor's Corp.

An issue of $100 million non-callable Ohio full faith and credit highway obligation bonds was won by a First Boston Corp. group with a net interest cost of 4.5315%.

The firm reported an unsold balance of $14.2 million late in the day.

Serial bonds were reoffered to investors at yields ranging from 2.50% in 1994 to 4.90% in 2003.

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

A Lehman Brothers group won $75 million Arlington County, Va., unlimited tax general obligation public improvement bonds with a TIC of 5.1692%.

Serial bonds were roeffered to investors at yields ranging from., 3.20% in 1995 to 5.45% in 2013.

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

Traders reported muted action, although attention picked up after FGIC said it would qualify $50 million New York State Dormitory Authority City University bonds for secondary insurance.

Secondary Markets

Secondary supply increased yesterday, reflected by The Blue List of dealer inventory, which rose $85.3 million, to $1.53 billion.

In secondary dollar bond trading, prices were quoted unchanged to down 1/4 point.

In late action, New York State Dormitory Authority City University 5 2/3s of 2018 were quoted at 6.04% bid, 6.00% offered; Seattle, Washington Water 5 1/4s of 2023 were quoted at 5.85% bid, 5.82% offered; and Puerto Rico 5 3/4s of 2015 were quoted at 5.85%, less 1/2, less 1/4.

Austin, Tex., Utility 5 5/8s of 2016 were quoted at 5.92% bid, 5.89% offered; Farmington, N.M., MBIA 5 7/8s of 2023 were quoted at 99 3/4-100 to yield 5.89%; Texas Municipal Power MBIA 5 1/4s of 2012 were quoted at 5.75% bid, 5.70% offered; and Chicago GO FGIC 5 5/8s of 2023 were quoted at 95 3/4-96 1/4 to yield 5.92%.

In short-term note trading, prices were mixed on the day, traders said.

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