Municipals close flat ahead of lighter post-holiday calendar; Pennsylvania eyes $1 billion

By Sheri Kasprzak

New York, May 31 – Municipals closed a slow session unchanged Tuesday as the market cranked back up after Memorial Day, traders said.

The 10-year triple-A muni bond yield closed out Tuesday at 1.70% and the 30-year bond yield at 2.64%.

Looking to the week, the holiday will keep new-issue action lower, but activity will be led by a $1 billion offering out of Pennsylvania.

The commonwealth is on tap Wednesday to price $990.55 million of first series 2016 general obligation bonds (Aa3/AA-/AA-).

The bonds will be sold competitively.

The offering is comprised of $355 million of G.O. bonds due 2016 to 2036 and $635.55 million of refunding bonds due 2016 to 2027.

Proceeds will be used to finance transportation projects and refund existing G.O. bonds.

Georgia G.O. bonds ahead

Next week, two billion-dollar offerings will hit the market.

Georgia is scheduled to price $1,367,335,000 of G.O. bonds via competitive sale. The pricing is scheduled for June 7.

The offering includes $717.29 million of series 2016A bonds, $199.87 million of series 2016B taxable G.O. bonds, $382.19 million of series 2016C G.O. refunding bonds and $67,985,000 of series 2016D taxable G.O. refunding bonds.

Proceeds will be used to finance capital projects and refund existing G.O. bonds.

On June 8, Maryland is slated to price $1,036,000,000 of G.O. bonds (Aaa/AAA/AAA) competitively.

The bonds are due 2019 to 2031.

Proceed will be used to finance the acquisition and construction of state facilities; capital grants to local governments for public schools, community colleges and jails and correctional facilities; and matching-fund loans and grants to local governments, nonprofit institutions and other entities for hospitals, cultural projects and other projects.

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