Municipals fall with Treasuries ahead of $7 billion supply; Mission Economic bonds deal ahead

By Sheri Kasprzak

New York, Nov. 2 – Municipal yields rose slightly on Monday as the threat of an interest rate hike sent Treasuries falling, market insiders said.

Yields on top-rated municipals increased as much as 2 basis points.

Over in Treasuries, the 10-year benchmark note yield rose by 4 bps to close at 2.20%, the 30-year bond yield rose by 2 bps to 2.95%, the two-year note yield rose by 2 bps to 0.77%, and the five-year yield climbed by 5 bps to 1.57%.

Natgasoline bonds set

Moving to the week’s new-issue action, about $7 billion of supply is expected.

This activity will be led by a $1.4 billion offering of series 2015 revenue bonds from the Mission Economic Development Authority of California through BofA Merrill Lynch.

The deal includes $1,159,860,000 of series 2015A taxable senior lien bonds and $240.14 million of series 2015B tax-exempt junior lien revenue bonds.

Proceeds will be used to finance the construction, equipment and installation of a methanol production facility in Beaumont, Texas, for Natgasoline.

BP Products plans deal

Another gasoline-related deal comes from BP Products North America Inc., which is offering $144.45 million of environmental facilities revenue bonds through the City of Whiting, Ind.

The corporation is using the proceeds from the deal to finance a sewage control project at its plant in the city.

Morgan Stanley & Co. LLC and BofA Merrill Lynch are the lead managers.

Hawaii preps bonds

Also ahead this week, the State of Hawaii is on tap to price $246.76 million of airport system revenue bonds through Morgan Stanley, BofA and Barclays.

The deal includes $235.73 million of series 2015A AMT bonds and $11.03 million of series 2015B non-AMT bonds.

Both bonds are due July 1, 2045.

Proceeds will be used to finance capital improvements to the Honolulu International Airport, the Kahului Airport, the Hilo International Airport, the Kona International Airport and the Lihue Airport.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.