Municipals end firmer as market digests $9 billion supply; Minnesota readies $1.09 billion deal

By Sheri Kasprzak

New York, July 24 – Municipals closed the week on a firmer note, with yields falling by about 1 basis point across the curve, traders reported.

The 10-year bond yield fell by 1 basis point to 2.25%, and the 30-year yield closed at 3.20%.

Meanwhile, weak housing data and stocks helped fuel another Treasuries rally. The 30-year Treasury bond yield fell by 2 bps to 2.96%, the 10-year note yield fell by 1 bp to 2.27%, and the five-year note yield fell by 1 bp to 1.64%.

Minnesota readies G.O. bonds

Looking to upcoming offerings, the State of Minnesota announced Friday that it plans to come to market with $1,094,695,000 of series 2015 general obligation bonds on Aug. 5.

The deal includes $376.11 million of series 2015A G.O. state various purpose bonds, $310 million of series 2015B G.O. state trunk highway bonds, $7.2 million of series 2015C taxable state various purpose bonds, $386,495,000 of series 2015D state various purpose refunding bonds and $14.89 million of series 2015E state trunk highway refunding bonds.

The 2015A bonds and the 2015B bonds are due 2016 to 2035. The 2015C bonds are due 2016 to 2025. The 2015D bonds and the 2015E bonds are due 2016 to 2027.

The bonds will be sold competitively with Public Resources Advisory Group as the financial adviser.

Proceeds will be used to finance capital projects and refund outstanding debt.

Building Authority deal set

Leading the new-issue calendar for the week, the State Building Authority of Michigan is slated to price $990 million of series 2015-I facilities program revenue and revenue refunding bonds on Thursday.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC lead the syndicate selling the bonds.

The bonds are due 2015 and 2019 to 2035 with term bonds due in 2040, 2045 and 2050.

Proceeds will be used to refund the authority’s series 2005, 2006 and 2008 revenue and refunding bonds.

The City of New York is also in the market Thursday with a $750 million G.O. sale through Siebert Brandford Shank & Co.

That deal has two tranches – a $650 million series 2016A tranche and a $100 million series 2016B tranche. Both are due 2016 to 2035.

The city plans to use the proceeds to redeem outstanding debt.

© 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.