Municipals rise with Treasuries as Chinese imports fall; Dasny offers $952.25 million bonds

By Sheri Kasprzak

New York, Oct. 13 – Municipals were slightly stronger Tuesday, following Treasuries, after Chinese imports reportedly fell in September.

Yields on top-rated munis fell by 1 basis point in spots, said traders in the afternoon.

Meanwhile, the 30-year Treasury bond yield fell by 4 bps and the 10-year yield fell by 5 bps after data indicated Chinese imports plummeted 20% in September, bolstering bonds.

Dasny prices bonds

Heading up Tuesday’s new-issue action, the Dormitory Authority of the State of New York priced $952,245,000 of series 2015B state sales tax revenue bonds.

The deal included series B group A bonds, series B group B bonds and series B group C bonds. The full breakdown of the tranches was not immediately available.

The series B group A bonds are due 2017 to 2025 with 5% coupons and 0.42% to 2.04% yields. The series B group B bonds are due 2026 to 2035 with 5% coupons and yields from 2.24% to 2.98%. The series B group C bonds are due 2036 to 2042 with a term bond due in 2045. The serial bonds have 5% coupons with 3.06% to 3.24% yields. The 2045 bonds have a 5% coupon priced at 114.706 to yield 3.25%.

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

Proceeds will be used to finance or reimburse a portion of the costs of state programs and projects.

Utility Debt deal set

Even though Dasny’s offering was large, it isn’t the largest of the week. There are quite a few large deals in the pipeline this week, but the Utility Debt Securitization Authority of New York tops the list with its $1 billion offering of restructuring bonds set to hit the market Thursday.

The bonds will be sold through BofA Merrill Lynch, Citigroup Global Markets Inc., Barclays and RBC Capital Markets LLC.

Proceeds will be used to purchase, redeem and repay existing debt.

Coming up on Wednesday, the Texas Public Finance Authority is on tap to price $441,865,000 of series 2015C taxable general obligation and refunding bonds (Aaa/AAA/AAA) through Piper Jaffray & Co. and Goldman Sachs & Co.

Those bonds are due 2016 to 2035, and the proceeds will finance grants for cancer research and prevention by the Cancer Prevention and Research Institute of Texas and refund commercial paper.

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