Municipals lower as week’s final deals price; Massachusetts sells $550 million G.O. bonds

By Sheri Kasprzak

New York, June 9 – Municipals rounded out Thursday on a positive note, following in line with better Treasuries, as investors turned their attention to safe havens.

The 10-year triple-A benchmark bond yield fell by 2 basis points to 1.60% and the 30-year bond yield to 2.50%.

Meanwhile, Treasuries rallied after stocks climbed, sending the 30-year bond and 10-year note yields down 3 bps.

Massachusetts brings G.O.s

Heading up the session’s new issues, the Commonwealth of Massachusetts priced $550 million of series 2016 consolidated loan general obligation bonds.

The deal included $55 million of series 2016D bonds and $495 million of series 2016E bonds.

The 2016D bonds are due 2022 to 2026 with 5% coupons and yields from 1.2% to 1.63%.

The 2016E bonds are due 2033, 2035, 2038, 2041, 2042, 2044 and 2046. The 2033 bonds have a 4% coupon priced at 113.521 to yield 2.29%, the 2035 bonds have a 4% coupon priced at 112.336 to yield 2.43% and the 2038 bonds have a 4% coupon priced at 111.416 to yield 2.54%. The 2041 bonds have a 3% coupon priced at 98.617 to yield 3.08%, the 2042 bonds have a 4% coupon priced at 110.918 to yield 2.6%, the 2044 bonds have a 3% coupon priced at 98.144 to yield 3.1% and the 2046 bonds have a 4% coupon priced at 110.587 to yield 2.64%.

The bonds were sold competitively.

Proceeds will be used to finance capital projects.

D.C. sells debt

Elsewhere during the day, the District of Columbia hit the market with $431,815,000 of series 2016A G.O. bonds.

The bonds (Aa1/AA/AA) were sold through J.P. Morgan Securities LLC and Ramirez & Co. Inc.

The bonds are due 2018 to 2036 with a term bond due in 2041. The serial coupons range from 1.75% to 5% and yields range from 0.75% to 2.73%. The 2041 bonds have a 3% coupon priced at 98.27 to yield 3.1%, a 4% coupon priced at 110.164 to yield 2.82% and a 5% coupon priced at 121.192 to yield 2.57%.

Proceeds will be used to finance capital improvement projects.

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