Munis mixed as Treasuries falter; market attracts retail investors; Kansas City markets bonds

By Cristal Cody

Eureka Springs, Ark., March 30 – Municipal primary action heated up on Wednesday with new deals priced by California State University, Anne Arundel County of Maryland and others, according to market sources.

Municipal bond yields gained 1 basis point on the long end, while bonds softened 1 bp to 5 bps on the shorter end of the curve.

“The government market went down pretty significant, but we went the other way,” a trader said. “I’m seeing a lot of retail coming in here, a lot of new issues today that all went very well. We’re coming up on April 1, so there is probably a lot of reinvestment going on.”

Treasuries lost some gains on the long end of the bond curve on Wednesday following strong jobs data and the government’s seven-year note auction. The 10-year Treasury note yield rose 3 bps to 1.81%, while the 30-year bond yield closed up 6 bps at 2.64%.

Kansas City preps sale

Looking ahead on the calendar, Kansas City, Mo., plans to price a five-part $332.86 million negotiated offering of special obligation bonds (A1/AA-/), according to a preliminary official statement.

The deal includes $60.51 million of series 2016A Kansas City, Mo., projects special obligation bonds, $33,695,00 of series 2016B Kansas City, Mo., projects taxable special obligation bonds, $31,335,000 of series 2016C Kansas City, Mo., projects special obligation refunding bonds, $25.16 million of series 2016D East Village project special obligation refunding bonds and $182.16 million of series 2016E downtown arena project special obligation improvement and refunding bonds.

The series 2016A and series 2016B bonds have serial maturities from Oct. 1, 2016 through Oct. 1, 2035.

The series 2016C bonds have serial maturities from Oct. 1, 2016 through Oct. 1, 2027.

The series 2016D bonds are due from April 15, 2017 through April 15, 2031.

The series 2016E bonds have serial maturities from April 1, 2017 through April 1, 2040.

Citigroup Global Markets Inc. is the bookrunner.

Proceeds will be used to provide funds to acquire, construct, reconstruct and improve city projects, to refund a portion of the outstanding series 2006A Kansa City municipal assistance corporation leasehold refunding and improvement revenue bonds and to advance refund all of the outstanding series 2008A special obligation improvement and refunding bonds, the outstanding series 2008B special obligation bonds and the outstanding series 2008C special obligation refunding bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.