Municipals hold steady as new issues price; Houston prices $230 million of short-term notes

By Sheri Kasprzak

New York, June 22 – Municipals remained flat on the session Wednesday as the final deals of the week priced, market insiders said.

Despite stronger Treasuries, munis held steady with the 10-year triple-A muni bond yield staying at 1.58% and the 30-year bond yield at 2.38%.

The five-year Treasury note yield fell by 2 basis points, and the 10-year note yield fell by 1 bp.

Houston TRANs price

Heading up the day’s primary action, Houston sold $230 million of series 2016 tax and revenue anticipation notes, said a pricing sheet.

The notes (/SP-1+/F1+) were sold competitively. The winning bidders for the notes were FTN Financial Inc., Mesirow Financial Inc., J.P. Morgan Securities LLC, Hutchinson Shockey Erley & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Raymond James/Morgan Keegan, Wells Fargo Securities LLC and Barclays. The weighted average true interest cost was 0.65857%.

The notes are due June 30, 2017 and have coupons from 1% to 5% and yields from 0.63% to 0.65%. The full details for the 5% notes were not immediately available.

Proceeds will be used to finance operating expenses for the coming fiscal year.

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