Munis slide; market anticipates $6.1 billion supply; California readies $1.49 billion bonds

By Sheri Kasprzak

New York, April 11 – Municipals rounded out the session Monday slightly off, with the 10-year bond yield rising by 1 basis point to 1.69% and the 30-year bond yield edging up 1 bp to 2.67%.

The week will feature a little more than $6 billion of new offerings, down from the previous week’s $7.7 billion calendar and lower than the $7 billion weekly average.

Moving to the Treasuries market, hopes for economic stimulus that could jumpstart China’s struggling economy sent investors to riskier waters, pushing the 30-year and 10-year Treasury yields up 1 bp each.

New York City Transitional set

Heading up the week’s subdued calendar, the New York City Transitional Finance Authority is slated to price $750 million of future tax secured bonds Tuesday.

The bonds will price competitively.

The offering is comprised of $199,475,000 of series 2016F-1 taxable bonds due 2018 to 2028, $50,525,000 of series 2016F-2 taxable bonds due 2018 to 2028 and $500 million of series 2016F-3 tax-exempt bonds due 2029 to 2042.

Proceeds will finance capital expenditures.

California bonds abound

After being absent from the muni landscape all of last year, California has plenty of bonds in the pipeline in the coming weeks.

The state announced plans to sell $1,488,795,000 of various purpose general obligation bonds on April 19.

The deal includes $236,795,000 of taxable G.O. bonds, $232.2 million of tax-exempt bonds and $1,019,800,000 of tax-exempt G.O. refunding bonds.

The bonds (Aa3/AA-/A+) will be sold competitively.

Proceeds will finance capital projects, pay outstanding G.O. commercial paper notes and current refund the state’s series 2013A highway safety, traffic reduction, air quality and port security bonds.

On Tuesday, the state will bring $100 million of veterans G.O. bonds (Aa2/AA/AA-) competitively.

Those bonds are due 2017 to 2046 with a term bond due in 2045.

Proceeds finance contracts of purchase.

Also on Tuesday, the California Infrastructure and Economic Development Bank plans to sell $414.21 million of clean water state revolving fund revenue bonds (Aaa/AAA/AAA) through Morgan Stanley & Co. LLC, Piper Jaffray & Co. and Stifel, Nicolaus & Co. Inc.

Those bonds are due 2017 to 2035, and proceeds will fund various water projects across the state.

Massachusetts water bonds ahead

Looking to Thursday’s issuance, the Massachusetts Water Resources Authority is on the calendar with $535 million of revenue and refunding bonds (Aa1/AA+/AA+) through senior managers Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley.

The deal includes $85 million of series 2016B general revenue bonds and $450 million of series 2016C refunding green bonds.

Proceeds will be used to finance capital improvements and repay outstanding debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.