Municipal prices rise along with Treasuries; New York upsizes G.O. bonds to $750.48 million

By Sheri Kasprzak

New York, July 31 – Municipal prices climbed on Friday, following but underperforming Treasuries, market insiders said.

Yields on top-rated munis fell by as much as 4 basis points. Meanwhile, economic data sent the 10-year and five-year note yields down 8 bps Friday.

Looking to the broader muni market, the week ahead will see a decline in supply with about $6.6 billion of new issues expected. Supply for the week just ended was $8 billion.

New York brings G.O. bonds

One of the week’s larger deals came from the City of New York, which priced $750,475,000 of series 2016 general obligation bonds. The offering was upsized from $750 million.

The deal included $645,765,000 of series 2016A bonds and $104.71 million of series 2016B bonds.

The 2016A bonds are due 2017 to 2030 with 2.25% to 5% coupons with yields from 0.57% to 3.12%. The 2016B bonds are due 2016 to 2035 with coupons from 3% to 5% and yields from 0.14% to 3.56%.

The bonds (Aa2/AA/) were sold through Siebert Brandford Shank & Co. LLC.

Proceeds will be used to redeem outstanding bonds.

Minnesota tops slate

The largest deal set for the week ahead comes from Minnesota, which is on tap to bring $1,094,695,000 of G.O. bonds Wednesday.

The deal includes $376.11 million of series 2015A various purpose bonds, $310 million of series 2015B state trunk highway bonds, $7.2 million of series 2015C taxable state various purpose bonds, $386,495,000 of series 2015D various purpose refunding bonds and $14.89 million of series 2015E state trunk highway refunding bonds.

The bonds will be offered competitively.

Proceeds will finance capital projects and refund outstanding bonds.

Central Puget transit deal set

Coming on Tuesday, the Central Puget Sound Regional Transit Authority out of Washington state is set to price $923.84 million of sales tax improvement bonds in two tranches.

Those bonds (Aa2/AAA/) will be sold through J.P. Morgan Securities LLC.

The offering includes $723.84 million of series 2015S-1 sales tax improvement and refunding bonds due 2018, 2024 to 2027 and 2029 to 2036 with term bonds due in 2045 and 2050 and $200 million of series 2015S-2 green improvement bonds.

The authority plans to use the proceeds to construct a portion of its transit system and to refund existing debt.

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