Municipals rally with Treasuries for second session; Metro Washington Airports prices offering

By Sheri Kasprzak

New York, May 15 - Municipals rallied along with Treasuries for the second session in a row, market insiders said.

Municipal yields fell by 2 basis points to 3 bps across the curve, with long bonds experiencing the most improvement, said a trader in the afternoon.

Meanwhile, Treasuries continued to coast on Wednesday's rally. The 10-year note yield fell by 4.5 bps to close at 2.498%. The 30-year bond yield fell by 4 bps to 3.334%, and the five-year note yield fell by 3 bps to 1.533%.

Treasuries got a boost on Wednesday from chatter that global central banks could be taking measures to improve low inflation.

Inflows into municipal mutual funds continue, with $1.2 billion reported for the week ended May 7.

Metro Washington bonds price

Moving to primary action, the Metropolitan Washington Airports Authority brought to market $421.76 million of series 2014 Dulles toll road second senior revenue refunding bonds.

The bonds (Baa1/BBB+/) were sold through J.P. Morgan Securities LLC.

The bonds are due Oct. 1, 2053, bear interest at 5% and priced at 103.944 to yield 4.4%, said a pricing sheet. The bonds were repriced, with a 10 bps reduction compared to initial pricing, a market insider reported Thursday.

Proceeds will be used to refund existing bonds.

JEA sells debt

In other pricing action, the Jacksonville Electric Authority of Florida sold $88.87 million of issue three, series seven St. Johns River Power Park System revenue bonds.

The bonds (Aa2/AA-/AA) were sold through BofA Merrill Lynch and Citigroup Global Markets Inc.

The bonds are due 2014 to 2033 with 2% to 5% coupons and yields from 0.18% to 3.79%, according to a pricing sheet.

Proceeds will be used to refund the authority's issue three, series two St. Johns River Power Park System revenue bonds.

Connecticut sale set

Moving to upcoming offerings, the State of Connecticut announced its plans Thursday to sell $650 million of series 2014C general obligation refunding bonds.

The bonds will be sold on a negotiated basis with Morgan Stanley & Co. LLC as the senior manager, said a preliminary official statement.

The bonds are due 2014 to 2025.

Proceeds will be used to refund the state's series 2004B and 2005C-D G.O. 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.