Municipals gain as Treasuries boosted by dropping oil; 30-year yield falls by 3 basis points

By Sheri Kasprzak

New York, March 17 – Muni yields fell along with Treasuries Tuesday as oil prices slid, market sources said.

During the day, the 30-year bond yield fell by 3 basis points to end at 3.13%, and the five-year yield fell by 2 bps to 1.39%. The 10-year bond yield fell by 1 bp to 2.17%.

Over in the Treasuries market, the 30-year Treasury yield fell by 6 bps, as did the 10-year yield.

Texas Tech offers debt

Leading the day’s primary activity, the Texas Tech University System hit the market with $317.74 million of series 2015 revenue financing system bonds.

The offering included $72.41 million of 16th series 2015A refunding and improvement bonds and $245.33 million of 17th series 2015B refunding and improvement bonds, according to a term sheet.

The 2015A bonds are due 2016 to 2035 with a term bond due in 2040. The serial coupons range from 2% to 5%. The 2040 bonds have a 3.625% coupon and priced at 98.305.

The 2015B bonds are due 2015 to 2029 with term bonds due in 2033, 2035 and 2045. The serial coupons range from 0.295% to 3.611% and all priced at par. The 2033 bonds have a 3.922% coupon, the 2035 bonds have a 3.922% coupon, and the 2045 bonds have a 4.172% coupon, and they all priced at par.

The bonds (/AA/AA+) were sold on a negotiated basis with Citigroup Global Markets Inc. and RBC Capital Markets LLC as the senior managers for the 2015A bonds and Wells Fargo Securities LLC and Raymond James/Morgan Keegan as the lead managers for the 2015B bonds.

Proceeds will be used to finance the construction, equipment, acquisition and repair of university system buildings and roadways and to refund the system’s series 2003 improvement bonds and 2005 and 2006 revenue bonds.

Baltimore County brings BANs

Leading the day’s competitive calendar, Baltimore County, Md., sold $200 million of series 2015 general obligation bond anticipation notes.

The offering included $88 million of series 2015 metropolitan district G.O. BANs and $112 million of series 2015 consolidated public improvement G.O. BANs, said a pricing sheet.

Both notes are due April 1, 2016, bear interest at 1.25% and priced at 101.068 to yield 0.18%, said Robert Burros, the county’s investment and debt manager, in an interview Tuesday afternoon.

The notes were sold competitively with J.P. Morgan Securities LLC winning the bid at a 0.188442% true interest cost.

Proceeds will be used to provide interim financing for the county’s capital program.

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