City places graduates into major art centre (7)
I believe the answer is:
mombasa
'city' is the definition.
(Mombasa is an example)
'graduates into major art centre' is the wordplay.
'graduates' becomes 'BAs' (people with Bachelor of Arts degrees).
'into' is an insertion indicator.
'major art centre' becomes 'moma' (I can't justify this - if you can you should give a lot more credence to this answer).
'bas' inserted inside 'moma' is 'MOMBASA'.
'places' acts as a link.
This may not be correct. It may belong to another bit of the clue.
Can you help me to learn more?
(Other definitions for mombasa that I've seen before include "Chief port of Kenya" , "Port city of Kenya" , "Kenyan port" , "African port" , "African city" .)