Municipals end flat to softer as week’s first deals hit market; California Housing sells bonds

By Sheri Kasprzak

New York, April 7 – Municipals ended the session Tuesday on a slightly softer note in spots, traders reported, as pricing action for the week got under way.

Yields were reportedly higher by about 1 basis point in spots with other maturities unchanged, said a trader in the afternoon.

Munis mostly ignored an improving Treasuries market. The 30-year bond yield fell by 5 bps.

Meanwhile, a new slate of offerings came to market, led by a multifamily housing deal from the California Housing Finance Agency.

Yields from 2.966% to 4.05%

The agency sold $174.18 million of series 2015A taxable bonds (A1/AA+/) through J.P. Morgan Securities LLC Tuesday.

The bonds are due in 2020, 2022, 2025 and 2030 with 2.379%, 2.966%, 3.65% and 4.05% coupons, respectively. They all priced at par.

Proceeds will be used to refund existing debt.

Dasny prices New School bonds

Elsewhere during the session, the Dormitory Authority of the State of New York offered up $124,255,000 of series 2015A revenue bonds for the New School.

The bonds (A3/A-/) were sold through Goldman Sachs & Co.

The bonds are due 2016 to 2035 with term bonds due in 2040, 2045 and 2050, said a term sheet. The serial coupons range from 3% to 5%. The 2040 bonds have a 5% coupon and priced at 113.928. The 2045 bonds have a 5% coupon and priced at 113.467. The 2050 bonds have a 4% coupon that priced at 98.142 and a 5% coupon that priced at 111.6.

Proceeds will finance capital improvements to New School facilities.

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