Municipals firm 2 bps-3 bps as new issues get good reception; New York brings $980.05 million

By Sheri Kasprzak

New York, Aug. 13 – Municipals improved Wednesday, buoyed largely by new issues and the excellent reception they received, said market insiders. Additionally, Treasuries were boosted during the day by lackluster retail sales data.

“A lot of yields are getting bumped, so we’re somewhat firmer overall,” said a trader during the afternoon.

As a result, the week’s largest offering, a general obligation bond sale from the City of New York, was upsized.

Municipal yields were seen better by 2 basis points to 3 bps across the curve.

New York sells G.O. bonds

Heading up the day’s primary action, the City of New York hit the market with $980.05 million of series 2015 G.O. bonds. The offering was upsized from $900 million.

The deal included $775.25 million of series 2015A bonds and $204.8 million of series 2015B bonds, said a pricing sheet.

The 2015A bonds are due 2016 to 2034 with coupons from 2.5% to 5%.

The 2015B bonds are due 2015 to 2034 with coupons from 2% to 5%.

The bonds were offered through joint bookrunners BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies & Co. and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to finance capital expenditures as part of the city’s four-year capital plan.

Minnesota prices debt

Another of the week’s major offerings priced. The State of Minnesota priced $895,235,000 of series 2014 G.O. bonds (/AA+/).

The deal included $429.67 million of series 2014A various purpose G.O. bonds, $288 million of series 2014B state trunk highway G.O. bonds, $26.04 million of series 2014C taxable various purpose G.O. bonds, $28.21 million of series 2014D state various purpose refunding G.O. bonds and $123,315,000 of series 2014E state trunk highway G.O. refunding bonds, said a pricing sheet.

The 2014A bonds are due 2015 to 2034 with 5% coupons and 0.105% to 2.96% yields.

The 2014B bonds are due 2015 to 2034 with 3% to 5% coupons and 0.13% to 3.41% yields.

The 2014C bonds are due 2015 to 2033 with coupons from 0.50% to 3.75% and yields from 0.15% to 3.63%.

The 2014D bonds are due 2015 to 2032 with coupons from 1.39% to 4% and yields from 0.15% to 3.68%.

The 2014E bonds are due 2015 to 2026 with 1% to 4% coupons and yields from 0.13% to 2.75%.

The bonds were sold competitively.

Proceeds will be used to finance capital projects, including educational, parks, pollution control, transportation, natural resources and agricultural facilities; to fund improvements to the state’s trunk highway system and to refund G.O. debt.

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