Municipals close mixed as FOMC holds rates steady; Hawaii brings $525 million of G.O. bonds

By Sheri Kasprzak

New York, March 16 – Municipals rounded out another busy session on a mixed note with shorter maturities improving and longer bonds a touch off, traders said.

A rally on the short end was in line with Treasuries, which also saw short maturities improve, after the Federal Open Market Committee held rates steady but left the door open for another rate hike later this year.

Yields on shorter maturities were lower by as much as 8 basis points, underperforming Treasuries, which saw the two-year yield fall by 11 bps. Out long, the 30-year yield rose by 1 bp. The 30-year Treasury bond yield held steady.

Hawaii sells G.O. bonds

Moving to the primary market, Hawaii sold $525 million of series 2016 general obligation bonds.

The deal included $500 million of series 2016FB bonds and $25 million of series 2016FC taxable bonds.

The bonds (Aa2/AA/) were sold competitively. The issuer did not respond to calls for the winning bidder Wednesday.

The 2016FB bonds are due 2019 to 2036 with 3% to 5% coupons and yields from 1.03% to 3.20%. The 2016FC bonds are due 2017 to 2021 with 1% to 1.75% coupons and yields from 0.85% to 1.68%.

Proceeds will be used to finance capital expenditures for the state and to refund its series 2008DK, 2008DN, 2009DQ and 2011DZ bonds.

Halifax hospital bonds price

Elsewhere, the Halifax Hospital Medical Center of Florida hit the market with $165,745,000 of series 2016 hospital revenue refunding and improvement bonds. The deal was upsized from $160 million.

The bonds (/A-/BBB+) were sold through J.P. Morgan Securities LLC.

The bonds are due 2017 to 2031 with term bonds due in 2036, 2041 and 2046. The serial coupons range from 3% to 5% with yields from 0.90% to 3.52%. The 2036 bonds have a 5% coupon and priced at 112.922 to yield 3.48%, the 2041 bonds have a 3.75% coupon and priced at 96.052 to yield 4.00%, and the 2046 bonds have a 4% coupon and priced at 99.129 to yield 4.05%.

Proceeds will be used to finance capital improvements to the medical center in Daytona Beach, Fla., as well as to refund the center’s series 2006A-B revenue bonds.

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