Munis mostly flat, weak on short end; Clark County School, Mecklenburg County in pipeline

By Cristal Cody

Tupelo, Miss., Feb. 19 – Municipal bonds ended mostly flat on Thursday, with bonds on the short end modestly weaker.

“We ended up with a couple cuts on the front end of the curve, but it was a lackluster day,” a trader said.

Bonds sold off 2 basis points on the 2018 maturity and 1 bp on the 2019 maturity, while the rest of the scale was unchanged.

“Finally, yesterday we got the bounce people had been waiting for, and then today we gave some of it back,” the trader said. “We continue to see bidders on most deals, but the spreads seem tight on the competitive side.”

Treasuries sold off after the Labor Department reported that initial jobless claims fell 21,000 to 283,000 in the previous week, better than the 290,000 forecast.

The 10-year Treasury note yield rose 5 bps to 2.12%, while the five-year note yield climbed 6 bps to 1.58%.

Clark County School ahead

Coming up in the week ahead, Clark County School District of Nevada intends to sell $398,405,000 of general obligation refunding bonds (A1/AA-/), according to a preliminary official statement.

The district’s offering includes $266.64 million of series 2015A bonds due 2016 through 2019 and $131,765,000 of series 2015B bonds due 2016 through 2022.

The bonds will be offered via a competitive sale on Tuesday.

Zions Bank Public Finance is the financial adviser.

Proceeds will be used to refund some outstanding G.O. bonds of the district.

Mecklenburg County in pipeline

Also in the pipeline, Mecklenburg County, N.C., plans to price $100 million of series 2015A G.O. school bonds, according to a preliminary official statement.

The bonds, due 2016 through 2035, will price competitively on Tuesday.

First Southwest Co. is the financial adviser.

Proceeds will be used to provide about $100 million for school facilities.

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