Muni yields stay flat as primary calendar fills up; California to bring $2 billion G.O. bonds

By Sheri Kasprzak

New York, March 8 - Municipal yields were mostly unchanged Monday to kick off the week as a large number of primary deals began to stack up, market insiders said.

"It's been a pretty uneventful day," said one trader.

"We're seeing a bit of activity out there. Things are moving in bits and pieces. I'd call it unchanged."

Amid the day's light trading activity, the Municipal Electric Authority of Georgia's series 2010 Plant Vogtle project bonds were moving. The 6.655% 2057 bonds were trading at 6.591% after pricing Thursday at par.

In primary, the State of California is expected to bring to market its previously announced $2 billion in series 2010 various purpose general obligation bonds this week, said a sales calendar.

The bonds (Baa1/A-/BBB) will be sold through lead managers J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.

The state plans to use the proceeds from the sale to refund existing commercial paper and fund a variety of capital projects.

Ascension Health's $1.35 billion sale ahead

In other upcoming sales, the Ascension Health Group of Michigan is expected to sell $1.346 billion in series 2010 revenue bonds on Wednesday, said a sales calendar.

The offering includes $670.53 million in series 2010 fixed-rate bonds and $675.39 million in series 2010 variable-rate bonds.

Morgan Stanley and Citigroup Global Markets Inc. are the senior managers.

The proceeds will be used to reimburse the health group for a variety of improvements and repairs to Ascension facilities.

D.C. to bring $711.16 million

Also ahead during the week, the District of Columbia is set to bring $711.16 million in series 2010 revenue and revenue refunding bonds (Aa2/AAA/AA) on Wednesday, according to a sales calendar.

The offering includes $696.005 million in series 2010A tax-exempt income secured revenue refunding bonds and $15.155 million in series 2010B federally taxable income secured revenue bonds.

The bonds will be sold through lead manager Goldman, Sachs & Co.

The 2010A bonds are due 2017 to 2031, and the 2010B bonds are due 2017.

Proceeds will be used to refund existing debt and finance the termination of swap agreements related to the refunded bonds.

Massachusetts offering to price

Elsewhere, the Commonwealth of Massachusetts is set to bring to market $538.86 million in series 2010A Sifma Index G.O. refunding bonds during the week, said a sales calendar.

The bonds (Aa2/AA/AA) will be sold through Morgan Stanley.

The bonds are due 2011 to 2014.

Proceeds will be used to refund existing bonds.

Detroit to sell $250 million

In other primary activity, the City of Detroit is set to price $250 million in series 2010 distributable state aid G.O. bonds this week, said a sales calendar.

The bonds (A1/AA-/) will be priced through senior manager Goldman Sachs.

Proceeds will be used to fund a portion of the city's accumulated and projected operating deficit.

Orlando-Orange Expressway deal planned

Looking out a little farther, the Orlando-Orange County Expressway Authority in Florida is set to sell $350 million in series 2010A revenue bonds during the week of March 15, said a preliminary official statement.

The bonds (A1/A/A) will be sold through senior manager JPMorgan.

Proceeds will be used to fund construction projects included in the authority's five-year plan.

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