Municipals end light trading day mostly unchanged; market prepares for a quiet Christmas Eve

By Sheri Kasprzak

New York, Dec. 23 - Municipal yields were mostly flat in a quiet day for trading, market insiders reported. Activity is expected to be extremely quiet on Thursday as market insiders and investors alike prepare for the Christmas holiday.

"It's very quiet," reported one trader reached during the early part of the day.

"Not much is trading; we don't really expect that much to trade either. There's a firmer tone, I'd call it, but we're mostly flat, just because we're not really seeing very much trading."

Thursday is expected to be even quieter, the trader said, with very little trading and very little coming to market.

"I haven't heard of anything pricing of any size," said one market source when asked if some issuers were planning to squeeze in one last offering during Thursday's shortened session.

"Whatever's going to get done is done. I know we're going to have a very empty office here, and I suspect that's the way it's going to be everywhere."

There was some light trading. Amid that activity, the University of Maryland Medical System's series 2009 revenue bonds were moving. The 4% 2015 bonds were trading at 2.972%. The 5% 2019s were seen at 4.241%, and the 5% 2029s were trading at 4.863%.

Elsewhere, the Battery Park City Authority of New York saw its recently priced series 2009A revenue bonds moving. The 6.375% 2039 bonds were trading at 5.936%.

Ohio, Maryland ready new deals

Meanwhile, the municipals market is looking toward offerings that are planned for early 2010. Among those deals, the State of Ohio is readying a $271.37 million sale of series 2010 general obligation bonds it plans to bring through Bank of America Merrill Lynch and J.P. Morgan Securities Inc.

The offering includes $93.605 million in series 2010A higher education G.O. refunding bonds, $131.6 million in series 2010A common schools G.O. refunding bonds and $46.165 million in series 2010A infrastructure bonds.

Proceeds will be used to refund existing debt.

Also planned for early 2010, Baltimore-based Maryland Economic Development Corp. is expected to price $258.55 million in series 2010 economic development revenue bonds through Goldman, Sachs & Co.

That deal includes $170 million in series 2010A bonds and $88.55 million in series 2010B bonds.

Proceeds from the sale will be used to construct a new cargo and machinery building and finance the acquisition and installation of four cranes at Seagirt Terminal in Baltimore.

New Jersey higher education sale ahead

Also coming up in the New Year, the Higher Education Student Assistance Authority of the State of New Jersey is scheduled to come to market with $338 million in series 2010-1 student loan revenue bonds (Aa2/AA/).

The bonds will be brought through Merrill Lynch & Co.

The offering includes $300 million in series 2010-1A refunding bonds and $38 million in series 2010-1B revenue bonds.

Proceeds will be used to fund student loans and refund existing debt.

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