Municipals close flat to better ahead of holiday-shortened week; MTA readies bond offering

By Sheri Kasprzak

New York, March 18 – Municipals were unchanged to slightly better Friday, insiders said.

Yields on top-rated municipals were flat to 2 basis points lower, a trader said. The 10-year benchmark note yield remained at 1.89%, and the 30-year bond yield was 2 bps lower at 2.86%.

Looking to the week ahead, less than $7 billion of new offerings are on the calendar, subdued by the Good Friday holiday at the end of the week.

Houston, MTA deals set

The largest negotiated deal in the week ahead comes from the City of Houston, which is set to price $600 million of series 2016A public improvement refunding bonds.

The bonds will be sold through senior manager Loop Capital Markets LLC.

The city plans to use the proceeds to refund outstanding public improvement bonds and certain commercial paper notes.

MTA preps bonds

In the competitive market, the Metropolitan Transportation Authority of New York is scheduled to sell $700 million of series 2016A transportation revenue bond anticipation notes on Tuesday.

The deal includes $500 million of series 2016A-1 notes due Oct. 1, 2016 and $200 million of series 2016A-2 notes due Feb. 1, 2017.

Proceeds will fund transit and commuter projects.

Also coming up on Tuesday, the State of New Jersey is set to sell $141,655,000 of general obligation bonds through Citigroup Global Markets Inc.

The bonds are due 2017 to 2023.

Proceeds will refund the state’s series 2004, 2007 and 2009 G.O. bonds.

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