Municipals trade ‘weaker across the board’; District of Columbia prices; deal pipeline grows

By Cristal Cody

Tupelo, Miss., Nov. 5 – Municipal bonds finished weaker for the third straight session of the week, market insiders said on Wednesday.

“It’s definitely weaker across the board today,” a trader said. “Today, we saw cuts from 2 [basis points] around the ‘21s and ‘24s and 3 [bps] on the ‘25s on out.”

Treasuries were mostly unchanged to weaker in quiet trading, according to market sources.

The 10-year benchmark note yield rose 0.8 bps to 2.35%. The 30-year bond yield rose 1.2 bps to 3.065%. The five-year note yield remained flat at 1.634%.

District of Columbia prices

In muni pricing action, the District of Columbia sold $250 million of 1.5% general obligation tax revenue anticipation notes at 101.193 to yield 0.12%, according to a pricing sheet.

The deal was downsized from $400 million.

The fiscal year 2015 TRANs (MIG1/SP-1+/F1+) are due Sept. 30, 2015.

The notes were offered via a competitive sale.

Acacia Financial Group, Inc. and Public Resources Advisory Group, Inc. were the financial advisers.

Proceeds will be used to finance governmental expenses of the district in anticipation of the collection of revenues for fiscal year 2015.

Plum Point to price

Missouri Joint Municipal Electric Utility Commission joined the deal pipeline with a $193.7 million offering of power project revenue refunding bonds for the Plum Point Energy Station project, according to a preliminary official statement.

The series 2014A bonds will be offered via a negotiated sale managed by bookrunners Wells Fargo Securities LLC and J.P. Morgan Securities LLC. The co-managers are BofA Merrill Lynch, BMO Capital Markets Corp., Barclays and Goldman Sachs & Co.

Proceeds will be used to refund a portion of outstanding series 2006 bonds.

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