Municipals end mostly flat as new issues start to price; Presence Health prices revenue bonds

By Sheri Kasprzak

New York, July 26 – Municipals rounded out a busy session on a mostly flat note with some weakness seen in very short maturities, market sources said.

The 10-year triple-A muni bond yield held steady at 1.48% and the 30-year yield at 2.29%.

Meanwhile, Treasuries ended the session mixed as the market awaits this week’s July Federal Open Market Committee meeting. The 30-year bond and 10-year note yields fell by 1 basis point each to 2.28% and 1.57%, respectively. The five-year note yield remained at 1.15%, and the two-year note yield rose 3 bps to 0.75%.

Some fears over a possible Fed rate hike pushed shorter notes down during the session while the rest of the curve remained flat or better.

Meanwhile, stocks were also mixed with the Dow Jones industrial average down 19.31 points at 18,473.75 and the S&P 500 index up 0.70 point at 2,169.18.

Presence Health price deal

Moving to new-issue action, the Illinois Finance Authority reportedly priced almost $1 billion of revenue bonds for Presence Health Network.

The bonds (Baa3/BBB-/BBB) were sold through senior manager J.P. Morgan Securities LLC and are due 2020 to 2034 with term bonds due in 2036 and 2041. Coupons range from 3.625% to 5%. The full details were not immediately available Tuesday evening.

Proceeds will be used to refund the health network’s series 1999A-B, 2009, 2009A, 2010A and 2016A revenue bonds.

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