Municipals slide in sympathy with Treasuries; Iowa Finance Authority prices bonds

By Sheri Kasprzak

New York, Feb. 4 – Municipals closed another session weaker as Treasuries slid on positive economic data and concerns over a potential budget crisis in Greece, market insiders said.

Municipal yields were higher by 1 basis point to 2 bps, in line with Treasury losses. Over in the Treasuries market, the 10-year note yield and the 30-year bond yield rose by 2 bps while the five-year note yield rose 1 bp.

Meanwhile, the last of the week’s expected new issues hit the market, led by a deal from the Iowa Finance Authority.

Iowa brings green bonds

The Iowa Finance Authority brought $323.46 million of series 2015 state revolving fund green bonds, a deal which was only recently announced.

The bonds (/AAA/) were offered through J.P. Morgan Securities LLC and Piper Jaffray & Co.

The bonds are due 2015 to 2035 with 1% to 5% coupons.

Proceeds will be used to finance a state drinking water match and leveraged clean water portion, as well as to refund existing debt.

Mississippi sells G.O.s

Among the week’s larger offerings, the State of Mississippi brought to market $751.89 million of series 2015 general obligation bonds. The four-tranche deal was upsized from $701,615,000.

The deal included $154,685,000 of series 2015A tax-exempt bonds, $128.95 million of series 2015B taxable bonds, $249.98 million of series 2015C tax-exempt refunding bonds and $218,275,000 of series 2015D taxable refunding bonds.

The 2015A bonds are due 2026 to 2035 with coupons from 4% to 5% and yields from 2.33% to 3.15%.

The 2015B bonds are due 2015 to 2026 with 0.28% to 2.979% coupons, all priced at par.

The 2015C bonds are due 2018 to 2028 with coupons from 4% to 5% and yields from 0.86% to 2.69%.

The 2015D bonds are due 2015 to 2032 with coupons from 0% to 3.729%, all priced at par.

In secondary trading, the bonds were seen trading higher. The 2015C 5% 2019 bonds were trading Wednesday at 1.11% after pricing at 1.09%. The 4% 2025s were seen at 2.22% after pricing at 2.23%.

Proceeds will be used to finance capital projects, including park and open space facilities, acquisitions and improvements to the Mississippi Civil Rights Museum and the Museum of Mississippi History, renovations to Jackson State University, Mississippi State University, Mississippi Valley State University, University of Mississippi Medical Center, University of Southern Mississippi and Holmes Community College, as well as to refund the state’s series 2006D, 2007B, 2008A-B, 2009E and 2011A G.O. bonds.

Virginia school bonds price

Elsewhere, the Virginia Public School Authority came to market with $434,715,000 of series 2015A school financing refunding bonds.

The bonds (Aa1//AA+) were sold competitively.

The bonds are due 2015 to 2035 with a term bond due in 2037, according to a pricing sheet. The serial coupons range from 3% to 5% with 0.18% to 3.05% yields. The 2037 bonds have a 3% coupon priced at 98.709 to yield 3.08%.

Proceeds will be used to refund the authority’s series 2006A-B, 2007A-B, 2008A-B and 2009B school financing bonds.

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