Municipals climb as Treasuries get boost from strong auction; Pennsylvania taps market

By Sheri Kasprzak

New York, Aug. 10 – Municipals rounded out a busy session on a positive notes, with yields falling across the curve, market sources said.

The 10-year triple-A muni bond yield fell by 2 basis points to close the day at 1.47%, and the 30-year bond yield fell 2 bps to 2.31%.

Meanwhile, the 10-year note yield fell by 5 bps to 1.50%, and the 30-year bond yield ended 2 bps lower at 2.23%.

Pennsylvania prices

Headlining the week’s new-issue action, the Commonwealth of Pennsylvania priced $1,208,725,000 of second series 2016 general obligation bonds.

The bonds (Aa3/AA-/AA-) were sold competitively and are due 2017 to 2036 with 3% to 5% coupons and yields from 0.67% to 3.101%.

Proceeds will be used to finance capital facilities projects.

Fort Worth ISD sells bonds

In other pricing action, the Fort Worth Independent School District of Texas sold $382,025,000 of series 2016 unlimited tax refunding and school building bonds. The deal was upsized from $374,435,000.

The bonds (Aa1/AA) were sold through Raymond James/Morgan Keegan.

The bonds are due 2017 to 2039 with a term bond due in 2041. The serial coupons range from 2% to 5% with yields from 0.5% to 2.61%. The 2041 bonds have a 4% coupon priced at 111.277 to yield 2.64%.

The bonds (Aa1/AA) were sold through Raymond James/Morgan Keegan.

Proceeds will be used to finance technology upgrades and other capital improvements, as well as to construct, equip, improve and renovate existing and new school buildings and refund outstanding debt.

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