Municipals little changed amid light secondary action; about $6.6 billion in new deals set

By Sheri Kasprzak

New York, Nov. 17 – It was a quiet opening to the week for the municipal bond market, traders said, with little secondary action to move the market ahead of $6.6 billion in new supply.

“It’s a very quiet day,” said one trader in the afternoon.

Yields remained flat, but some weakness in the Treasuries market did send some 10-year maturities taking cuts during the session.

Treasuries, meanwhile, dipped with the 10-year note yield climbing by 2 basis points and the 30-year bond yield also rising 2 bps.

Connecticut leads deal

Heading up the week’s coming new issues, the State of Connecticut is on board to price $550 million of series 2014 general obligation bonds through J.P. Morgan Securities LLC.

The offering includes $240 million of series 2014F G.O.s, $60 million of series 2014G G.O. green bonds and $250 million of series 2014H G.O. refunding bonds.

Proceeds from the sale will finance state projects, including clean water projects, as well as refund outstanding debt.

In August, the state hit the market with $510.59 million of G.O. bonds with yields ranging from 0.13% to 3.59% and maturities from 2015 to 2034.

DART bonds to price

In other large deals, the Dallas Area Rapid Transit is slated to sell $402,305,000 of series 2014A senior lien sales tax revenue refunding bonds through JPMorgan on Wednesday.

The bonds (Aa2/AA+/) will be used to refund a portion of the authority’s series 2007 revenue refunding bonds and 2008 revenue bonds.

The bonds are due 2015 to 2036.

DART last came to the market with a similar offering in November 2012. Those bonds are due 2013 to 2042 with 1% to 5% coupons and yields from 0.229% to 2.99%.

New York Water trades higher

Moving to that light secondary activity, some interest was seen for New York City Municipal Water Authority’s series 2015EE bonds, which priced last week.

The 3.625% 2036s were seen trading late Monday afternoon at a yield of 3.501% after pricing Friday at 3.693%. The bonds traded in a range of 3.424% and 3.714% during the session.

© 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.