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Municipal bonds strengthen; $5.4 billion of new issues await; Marta, DART bond deals to price
By Sheri Kasprzak
New York, Jan. 29 – Municipals closed the week stronger with the 10-year bond yield falling by a basis point to 1.83% and the 30-year yield shrinking 2 bps to 2.80%, traders said.
Meanwhile, Treasuries climbed after fourth-quarter gross domestic product indicated an economic slowdown. The 10-year benchmark note yield dropped 6 bps to 1.94%, and the 30-year bond yield fell by 4 bps to 2.75%. The five-year note yield shrank by 7 bps to 1.33%, and the two-year yield declined by 7 bps to 0.76%.
Yields declined as fourth-quarter GDP reportedly rose by 0.7%, significantly slower than the 2% growth seen in the third quarter, said the Bureau of Economic Analysis.
Looking to the week ahead, about $5.4 billion of new offerings are expected to hit the market, up from the $4.6 billion sold during the week just completed. The week’s total ended up smaller than expected after the Chicago Board of Education pulled its $875 million general obligation bonds. The deal is now slated to price day-to-day.
Transit deals abound
Two significant transit offerings are in the market during the week ahead, both pricing on Thursday.
Dallas Area Rapid Transit is scheduled to price $482.53 million of refunding bonds (Aa2/AA+/) with Morgan Stanley & Co. LLC as the lead bookrunner.
The Metropolitan Atlanta Rapid Transit Authority is also on tap to bring refunding bonds, with this deal coming via competitive bid.
Marta is set to price $247,735,000 of sales tax revenue refunding bonds.
Proceeds from the deal will be used to refund the authority’s series 2007B revenue bonds.
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