Municipals seen mostly unchanged; New York City Municipal Water Authority brings $400 million

By Sheri Kasprzak

New York, Jan. 26 - Municipal yields were mostly flat on Tuesday with some slight weakness seen long, according to traders.

"It's pretty much been like this for the past few sessions," noted one trader reached during the afternoon.

"Friday it was a similar story, and yesterday it felt about the same, too. We have been following Treasuries, and that's probably where the weakness is coming from. Today, we're really unchanged short, but out long, yields might be up by 2 basis points or so. We're talking 30, 40 years though."

Another trader reported that secondary activity has been thin over the past few days and noted that the short end was flat during Tuesday's session with only slight weakness out long.

She said, "1 or 2 [basis points] is about right."

Amid the light trading activity, the Louisiana Local Government Facilities and Community Development Foundation's bonds sold last week for Woman's Hospital in Baton Rouge were seen in action. The 5% 2019 bonds were trading near par.

NYC water bonds price

In primary action, the New York City Municipal Water Authority priced Tuesday $400 million in series 2010D second general resolution revenue bonds, said a pricing sheet.

The bonds (//AA) were sold through Ramirez & Co. Inc.

The bonds are due 2041 and 2042. The 2041 bonds have a 6.452% coupon priced at par, and the 2042 bonds have a 5.952% coupon priced at par.

Proceeds will be used to fund the authority's capital improvement program.

Massachusetts education sale ahead

Out on the horizon, the Massachusetts Educational Financing Authority is set to sell $407 million in series 2010 education loan revenue bonds, said a preliminary official statement.

The offering includes $316 million in series 2010A bonds, $45 million in series 2010B bonds and $46 million in series 2010C bonds.

The bonds (/AA/A) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the senior manager.

All three series of bonds are due 2012 to 2020 with term bonds due 2024 and 2032.

Proceeds will be used to fund educational loans.

Provena Health bonds planned

In other upcoming news, the Illinois Finance Authority is expected to sell $126 million in series 2010 revenue bonds for Provena Health, said a preliminary official statement.

The sale includes $115.395 million in series 2010A bonds and $10.605 million in series 2010B bonds.

Goldman, Sachs & Co. is the senior manager.

The maturities for the 2010A bonds have not been set. The 2010B bonds are due 2034.

Proceeds will be used to purchase from Goldman Sachs prior bonds issued for Provena Health as well as reimburse Provena for the costs of constructing, acquiring, equipping and renovating Provena facilities.

Provena Health is based in Mokena, Ill.

American Baptist Homes to price bonds

Also coming up, the California Statewide Communities Development Authority plans to price $106.105 million in series 2010 revenue bonds for American Baptist Homes of the West, said a preliminary official statement.

The bonds (/BBB-/BBB+) will be sold through senior manager Ziegler Capital Markets Inc.

The maturities have not yet been set.

Proceeds will be used to fund the construction, expansion, renovation, acquisition and equipment of facilities operated by American Baptist Homes of the West, which is based in Pleasanton, Calif.

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