Municipals up with Treasuries amid terrorism fears; Wisconsin sells $225 million competitively

By Sheri Kasprzak

New York, Nov. 17 – Municipals climbed on the day along with stronger Treasuries, market insiders said, as investors flock to safe havens amid fears over terrorism.

Yields on top-rated municipals fell by 2 to 3 basis points, following in line with Treasuries. Over in Treasuries, the 30-year bond yield fell by 3 basis points to close at 3.04%, the 10-year note yield fell by 2 bps to 2.25%, the five-year note yield remained flat at 1.66%, and the two-year yield fell by 2 bps to 0.86%.

Wisconsin brings bonds

The State of Wisconsin hit the market Tuesday with $225 million of series 2015A transportation revenue bonds.

The bonds (//AA+) were sold competitively with BofA Merrill Lynch winning the bid at a 3.378736% true interest cost.

The bonds are due 2017 to 2036 with 3% to 5% coupons and yields from 0.62% to 3.03%, according to a pricing sheet.

Proceeds will be used to finance state transportation facilities and highway projects.

Maryland Water sells debt

In other pricing activity, the Maryland Water Quality Financing Administration reportedly sold $180 million of bay restoration revenue bonds, but the full terms were not immediately available.

The bonds were sold competitively and are due 2018 to 2030 with yields from 0.87% to 3.13%.

Proceeds will be used to finance local government grants to make major wastewater upgrades.

RPI bonds price

Elsewhere during the session, Troy Capital Resources Corp. of New York priced $80 million of series 2015 revenue bonds for Rensselaer Polytechnic Institute.

The bonds (A3/A-/) were sold through KeyBanc Capital Markets Inc.

The bonds are due 2016 to 2030 with term bonds due in 2032 and 2035. The serial coupons range from 1.5% to 5% with yields from 0.65% to 3.70%, said a term sheet. The 2032 bonds have a 5% coupon that priced at 112.731 to yield 3.50%, and the 2035 bonds have a 4% coupon that priced at 99.59 to yield 4.03%.

Proceeds will be used to refund the corporation’s series 1999A-B and 2006 revenue bonds.

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