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Municipals weaken with Treasuries as new issues price; New York City prices $1.05 billion bonds
By Sheri Kasprzak
New York, Aug. 2 – Municipals rounded out a busier session on a weak note, following in line with Treasuries, market insiders said.
The 10-year triple-A muni bond yield rose by 3 basis points to 1.47%, and the 30-year bond yield climbed 4 bps to 2.31%.
Meanwhile, Treasuries slid after Japan’s prime minister announced a $132 billion fiscal stimulus package that drew attention away from safe-haven securities. The 30-year Treasury bond yield rose by 5 bps to 2.29%, and the 10-year note yield increased by 4 bps to 1.55%. The five-year note yield edged up 1 bp to 1.07%, and the two-year note yield held steady at 0.67%.
New York brings $1 billion
Moving to Tuesday’s new-issue action, the City of New York reportedly priced $1.05 billion of general obligation bonds in three tranches.
The offering included $800 million of series 2017A-1 tax-exempt bonds, $172,945,000 of series 2017A-2 taxable bonds and $77,055,000 of series 2017A-3 taxable bonds.
The details of the series 2017A-1 bonds were unavailable Tuesday evening. The 2017A-2 bonds are due 2022 to 2026 with 1.7% to 2.46% coupons and yields from 1.7% to 2.46%. The 2017A-3 bonds are due 2017 to 2028 with 2.52% to 2.69% coupons and priced at par.
The bonds (Aaa/AAA) were sold through Goldman Sachs & Co.
Proceeds will be used for corporate purposes.
U of Texas sells debt
Elsewhere, the University of Texas System sold $350 million of series 2016F revenue financing system bonds.
The bonds are due in 2041, 2045 and 2047. The 2041 bonds have a 2% coupon and priced at par, the 2045 bonds have a 3% coupon and priced at 100.685 to yield 2.92%, and the 2047 bonds have a 5% coupon and priced at 146.418 to yield 2.76%.
The bonds were sold through senior manager Goldman Sachs.
Proceeds will refund a portion of the system’s series A commercial paper notes.
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