Municipals close steady as market eyes $11 billion slate; L.A. USD, Massachusetts plan deals

By Sheri Kasprzak

New York, Feb. 29 – Municipal yields held steady during a quiet session Monday that may prove to be the calm before the storm. The week has about $11 billion of new issues on the calendar, led by two offerings over $1 billion in size.

The 10-year triple-A muni bond yield closed at 1.83% and the 30-year at 2.85%

Elsewhere in the market, trading volume was substantial at the end of the week, reaching $10 billion Friday, almost $2 billion higher than the 30-day average, a market source said Monday.

L.A. USD eyes bond sale

Leading the new issues, the Los Angeles Unified School District will price $1,225,000,000 of series 2016 general obligation bonds (Aa2//AAA). Pricing is scheduled for Tuesday.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the senior managers.

The offering includes $650 million of election of 2008 series 2016A G.O. bonds and $575 million of series 2016 G.O. refunding bonds.

Proceeds will be used to finance school construction projects and refund existing debt.

Massachusetts G.O. bonds set

Among the other significant offerings, the Commonwealth of Massachusetts is on tap to price $1,101,335,000 of series 2016 G.O. bonds (Aa1/AA+/AA+) on Thursday.

The deal is comprised of $600 million of series 2016A consolidated loan G.O. bonds due 2018 to 2038 with term bonds due in 2041 and 2046 and $501,335,000 of series 2016A G.O. refunding bonds due 2016 to 2033.

The bonds will be offered through BofA Merrill Lynch and Wells Fargo.

Proceeds will be used to fund capital projects in the state.

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