Municipals round out first session of 2015 on strong note; Miami-Dade eyes G.O. bond offering

By Sheri Kasprzak

New York, Jan. 2 – Municipals closed out the first session of 2015 on a positive note, largely following improved Treasuries amid very light action, insiders said.

Yields on longer maturities were seen lower by about 2 basis points to 3 bps with shorter maturities holding steady, said one trader in the afternoon.

Meanwhile, the 30-year Treasury bond yield fell by 6 bps to 2.69% after disappointing ISM Manufacturing index and construction spending data was released. Elsewhere, the benchmark 10-year Treasury note yield fell by 5 bps to 2.12%. The five-year note yield fell by 4 bps to 1.61%. The rest of the short end of the curve remained flat.

Miami-Dade deal set

Looking to the week ahead, about $3.3 billion of new offerings are slated to hit the market, still subdued but a vast improvement supply-wise over the past week’s $105 million pace.

One of the larger deals in the week ahead comes from Miami-Dade County, Fla., which is on tap to sell $371.93 million of series 2015 general obligation bonds on Tuesday through competitive sale.

The bonds (Aa2/AA/) will refund existing debt and finance projects for the county’s public health trust.

The deal includes $52,125,000 of series 2015A parks program G.O. refunding bonds, $226.4 million of series 2015B Building Better Communities program G.O. refunding bonds and $93,405,000 of series 2015C public health trust program G.O.s.

Texas A&M bonds planned

Also coming up on Tuesday, Texas A&M University will offer $198,865,000 of series 2015 revenue financing system bonds through Citigroup Global Markets Inc.

That deal includes $63.9 million of series 2015A bonds and $134,965,000 of series 2015B bonds.

The bonds (Aaa/AA+/AA+) will refund the university’s series 2005A revenue financing system bonds.

Bolingbrook bonds trade

Moving to secondary action, the Village of Bolingbrook, Ill.’s recently priced series 2014A G.O. refunding bonds were actively traded Friday with the 4% 2038s seen trading higher at 3.768%. The bonds priced last week to yield 4.17%.

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