Municipals kick off short week mostly unchanged; just $1 billion of new supply anticipated

By Sheri Kasprzak

New York, Nov. 24 – Municipals were flat ahead of the Thanksgiving-shortened week, market insiders said Monday, with very little secondary activity and just $1 billion of new deals expected.

Yields were flat, consistent with Friday’s levels, said a trader in the afternoon. About $3 billion in trades were reported in the late afternoon, the trader said.

With the holiday ahead, new-issue volume this week is expected to be a paltry $1 billion led by a $270 million offering from the Illinois State Toll Highway Authority.

Siebert, RBC to lead

The offering of series 2014D toll highway senior revenue refunding bonds (Aa3/AA-/AA-) will be sold through senior managers Siebert Brandford Shank & Co. LLC and RBC Capital Markets LLC.

The bonds are due 2018 to 2025, and proceeds will be used to refund existing revenue bonds.

Transportation bonds on tap

Although issuance in the week ahead will be light, new issues are already stacking up for the week of Dec. 1.

Among those deals, the Los Angeles County Metropolitan Transportation Authority is slated to price $140,435,000 of series 2014A Proposition A first-tier sales tax revenue refunding bonds (Aa2/AAA/) through competitive bid.

Pricing is scheduled for Dec. 3.

Proceeds will be used to refund the authority’s series 2005A senior sales tax revenue bonds.

Minnesota Power bonds active

Moving to Monday’s light secondary action, the Minnesota Municipal Power Agency’s series 2014A refunding revenue bonds were trading higher.

The 3.5% 2028s were trading at 3.359% late Monday after pricing last week at 3.57%.

Elsewhere, New York City Municipal Water Finance Authority’s series 2015EE bonds were also seen trading.

The 4% 2045s were seen at 3.579% after pricing at 3.905%.

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