Municipals slip along with Treasuries as new issues price; San Antonio brings $278.17 million

By Sheri Kasprzak

New York, July 28 – Municipal prices fell on the day as Treasuries reversed direction on stronger Chinese stocks, market insiders said.

Yields on top-rated munis rose by as much as 2 basis points with the 10-year yield rising 2 bps to 2.26% and the 30-year rising 2 bps to 3.23%, said a trader in the afternoon. Munis outperformed Treasuries, which saw yields rise as much as 3 bps.

San Antonio leads pricing

Moving to the day’s active primary calendar, San Antonio offered $278,165,000 of series 2015 general improvement bonds and taxable certificates of obligation.

The deal included $234,225,000 of series 2015A general improvement bonds and $43.94 million of series 2015B taxable certificates of obligation, said pricing sheets.

The 2015A bonds are due 2016 to 2035 with 4% to 5% coupons. The 2015B certificates are due 2016 to 2035 with coupons from 0.88% to 4.162%.

The bonds (Aaa/AAA/AAA) were sold through senior manager Citigroup Global Markets Inc.

Proceeds will be used to finance various capital improvements for the city and refund existing debt.

Fort Worth brings bonds

Also out of the Lone Star State, Fort Worth priced $127.82 million of series 2015A general purpose and improvement refunding bonds.

The bonds (Aa1/AA+/AA+) were sold competitively with Citigroup. winning the bid at a 2.448720% true interest cost.

The bonds are due 2016 to 2035 with 3.25% to 5% coupons.

Proceeds will be used to refund the city’s series 2004, 2007 and 2007A general purpose bonds and its series 2007 combination tax and limited obligation certificates of obligation.

Tulare prices bonds

In other primary action, the City of Tulare, Calif., priced $85,355,000 of series 2015 sewer revenue refunding bonds.

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

The bonds are due 2016 to 2035 with term bonds due in 2041 and 2045. The serial coupons range from 2% to 5%. The 2041 bonds have a 3% coupon that priced at par and a 5% coupon that priced at 109.664. The 2045 bonds have a 5% coupon and priced at 109.221.

Proceeds will be used to refund the city’s series 2006 and a portion of its series 2010 sewer revenue bonds.

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