Municipals improve with Treasuries ahead of $10 billion supply; 30-year bond yield falls 4 bps

By Sheri Kasprzak

New York, Nov. 13 – Municipals followed in line with Treasuries Friday after disappointing Producer Price Index data, market insiders reported.

The 30-year triple-A muni bond yield fell by 4 basis points to close out the week at 3.15%, and the 10-year bond yield fell by 2 bps to 2.17%.

Meanwhile, Treasuries were boosted Friday after lackluster PPI data was released. The 30-year Treasury bond yield fell by 3 bps to close at 3.06%, the 10-year note yield fell by 4 bps to 2.28%, the five-year note yield fell by 6 bps to 1.67%, and the two-year yield fell by 3 bps to 0.86%.

PPI reportedly fell by 0.4% in October.

Connecticut leads new deals

Looking to upcoming sales, the week ahead will provide a healthier new-issue slate following the latest week’s anemic $5 billion holiday calendar. About $10 billion of new offerings are slated to price.

Among the week’s larger deals is a $650 million general obligation offering from the State of Connecticut.

The state will offer $585 million of G.O. bonds and $65 million of green G.O. bonds on Tuesday.

The syndicate will be led by Barclays.

Proceeds will finance capital and water pollution control projects for the state.

Mississippi readies G.O. bonds

Another significant state G.O. sale comes from Mississippi, which is on tap to bring $293,595,000 of G.O. bonds on Wednesday.

The state plans to sell $177,325,000 of series 2015F tax-exempt bonds and $116.27 million of series 2015G taxable bonds.

The bonds (Aa2/AA/AA+) will be sold on a negotiated basis with J.P. Morgan Securities LLC leading the syndicate for the 2015F bonds and Piper Jaffray & Co. leading the 2015G syndicate.

Proceeds will be used to finance capital improvements to Jackson State University, Mississippi State University, University of Mississippi, University of Mississippi Medical Center and Alcorn State University, as well as junior and community colleges in the state.

© 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.