Municipals rally ahead of $6 billion supply; Metropolitan Transportation eyes $700 million BANs

By Sheri Kasprzak

New York, June 10 – Municipals continued their weeklong rally Friday as the market awaited a much more subdued new-issue calendar, insiders said.

Yields on top-rated long munis fell by 3 basis points to close the day at 2.44%, said a trader.

Looking to the week ahead, about $6 billion of new issues are expected to hit the market, a far cry from the $15.7 billion priced during the week just completed.

MTA preps notes

Heading up those issues, the Metropolitan Transportation Authority of New York is on tap to price $700 million of series 2016A dedicated tax fund bond anticipation notes on Tuesday.

The deal includes $350 million of series 2016A-1 notes and $350 million of series 2016A-2 notes.

The 2016A-1 notes are due March 1, 2017, and the 2016A-2 notes are due June 1, 2017.

The notes will be sold competitively, and proceeds will finance capital expenditures for the authority’s coming fiscal year.

Illinois readies G.O. bonds

Another significant competitive offering in the week ahead also comes Tuesday. Illinois is in the market with $550 million of general obligation bonds.

First Southwest Co. is the financial adviser for the bonds, which are due 2017 to 2041.

Proceeds will be used to finance capital projects within the state.

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