Municipals hold steady as market awaits much smaller supply; Irvine Ranch water bond deal set

By Sheri Kasprzak

New York, Aug. 12 – Municipals were mostly unchanged Friday, largely ignoring a rally for Treasuries on weaker-than-expected retail sales data, market insiders said.

The 10-year triple-A muni bond yield remained at 1.50% and the 30-year bond yield at 2.33%.

Meanwhile, the 10-year Treasury yield fell by 6 basis points to 1.51%, and the 30-year bond yield ended the week 5 bps lower at 2.23%. The five-year note yield fell 6 bps to 1.10%, and the two-year yield fell 5 bps to 0.71%.

U.S. retail sales remained unchanged at $457.7 million for July, according to the U.S. Census Bureau after economists anticipated a 0.4% increase.

Looking to the week ahead, new-issue supply is expected to decline dramatically, with just over $5 billion expected.

Irvine Ranch deal ahead

Among the supply coming up, the Irvine Ranch Water District of California plans to price $117,505,000 of series 2016 certificates of participation (/AAA/AAA).

The COPs will be sold through senior manager Goldman Sachs & Co.

The COPs are due 2021 to 2046.

Proceeds will be used to finance capital improvements at the Michelson Water Reclamation Plant Biosolids and Energy Recovery Facilities and other water and wastewater facilities.

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