Munis close session mixed amid light secondary activity; Metro Atlanta Rapid Transit prices

By Sheri Kasprzak

New York, June 5 – Municipals rounded out a quiet session on Thursday mixed with yields moving only slightly, insiders said. Secondary activity was reportedly light ahead of Friday’s unemployment report.

“Yields aren’t moving by much, but there’s a mixed tone,” a trader said in the afternoon.

“A basis point up here and a basis point down there, that kind of thing. There’s not a lot of trading.”

Amid the trading action, the Miami-Dade County Expressway Authority’s toll system revenue bonds (A3/A-/A-) were seen trading 4 bps richer in the 2044 maturity. The 4.3% bonds priced Wednesday to yield 4.1%.

The European Central Bank dropped its deposit rate to negative 0.1% from zero after its meeting Thursday in a move intended to battle continued low inflation in Europe. Most of the global bond yields fell after the news, including yields on U.S. Treasuries.

The 10-year Treasury note yield finally broke a five-day losing streak when it fell by 2.5 bps to end at 2.582% Thursday. The five-year note yield fell by 2 bps to 1.624%, and the 30-year bond yield fell by 1 bp to 3.432%.

Marta bonds sold

Moving to primary action, the Metropolitan Atlanta Rapid Transit Authority of Georgia sold $286.7 million of series 2014A refunding and new money sales tax revenue bonds.

The bonds (/AA+/AA-) were sold competitively. The issuer did not respond to calls for the winning bidder Thursday.

The bonds are due 2021 to 2038 with a term bond due in 2044, said a pricing sheet. The serial coupons range from 4% to 5% with 1.91% to 3.84% yields. The 2044 bonds have a 4% coupon priced at par.

Proceeds will be used to finance capital improvements to the transit system’s infrastructure.

Arizona school bonds price

Elsewhere during the session, the Arizona School Facilities Board hit the market with $226,125,000 of series 2014 taxable refunding certificates of participation.

The deal included $110,695,000 of series 2014A-1 COPs, $60.39 million of series 2014A-2 COPs and $55.04 million of series 2014A-3 COPs, said a pricing sheet.

All of the COPs priced at par.

The 2014A-1 COPs are due 2015 to 2017 with 0.32% to 1.474% coupons.

The 2014A-2 COPs are due 2016 and 2018 with 0.945% and 2.078% coupons.

The 2014A-3 COPs are due 2016 and 2019 with 0.945% and 2.378% coupons.

The COPs (A1/A+/) were sold through BofA Merrill Lynch.

Proceeds will be used to refund the board’s series 2005A-1, 2005A-2 and 2005A-3 COPs.

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