Municipals strengthen along with Treasuries as stocks drop; Bay Area Rapid Transit sells bonds

By Sheri Kasprzak

New York, Sept. 24 – Municipals rounded out a quiet session on a stronger note with yields on top-rated municipals falling by as much as 4 basis points, traders reported.

Munis followed closely with Treasuries, which got a boost from a tumbling U.S. stock market and troubled global stocks. The 30-year Treasury yield fell by 4 bps, and the 10-year yield fell by 3 bps.

Meanwhile, this week’s new-issue action might have been subdued, but the coming week will prove to be a bit more active with more than $5 billion already on the calendar and more expected before the start of next week.

BART hits market

Heading up Thursday’s primary action, the San Francisco Bay Area Rapid Transit District of California sold $276,805,000 of election of 2004 series 2015D general obligation refunding bonds.

The bonds (Aaa/AAA/) were sold through Wells Fargo Securities LLC.

The bonds are due 2017 to 2035 with 2% to 5% coupons and 0.50% to 3.31% yields, according to a pricing sheet.

Proceeds will be used to refund the district’s series 2005A and 2007B G.O. bonds.

Mississippi offers bonds

Moving to state deals, the State of Mississippi hit the market with $200 million of series 2015E gaming tax revenue bonds.

The bonds (A3/A+/A+) were sold through Morgan Stanley & Co. LLC.

The bonds are due 2016 to 2035 with 2% to 5% coupons and yields from 0.61% to 3.67%.

Proceeds will be used to finance the repair, rehabilitation and maintenance of bridges in the state.

ProMedica deal downsized

Elsewhere in the market, Lucas County, Ohio, cut the size of its hospital revenue bonds offered on behalf of ProMedica Health System obligated group, a term sheet said. The county sold $46,755,000 of the series 2015B bonds, trimmed back from $50 million.

The bonds (Aa3/AA/) were sold through senior managers Barclays and Citigroup Global Markets Inc.

The bonds are due Nov. 15, 2045, have a 4% coupon and priced at 97.5 to yield 4.146%.

Proceeds will be used to construct, equip, furnish and improve ProMedica facilities in Lucas County.

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