Municipal prices end stronger; New York Urban Development preps $1.14 billion bond deal

By Sheri Kasprzak

New York, Dec. 4 – Municipals wrapped up the week higher, following stronger Treasuries, market sources said.

Yields on top-rated munis fell by 2 basis points to 3 bps as the 30-year Treasury bond yield fell by 6 bps and the 10-year yield fell by 5 bps after the market seesawed on stronger nonfarm payrolls numbers.

Given the weakness in Treasuries relative to municipals on Thursday, municipal-to-Treasury ratios fell to the lowest level in more than a year at 89.5% in 10-years and 100.2% in 30-years.

Looking to the coming week, new-issue supply will remain right around this week’s levels with about $7 billion on the calendar so far.

New York Urban on tap

Heading up the week’s new-issue action, the New York State Urban Development Corp. is on tap to price $1,143,580,000 of series 2015 general purpose state personal income tax revenue bonds Tuesday.

The offering includes $906.02 million of series 2015A bonds and $237.56 million of series 2015B taxable bonds.

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

The 2015A bonds are due 2016 to 2045, and the 2015B bonds are due 2017 to 2021.

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

Illinois Tollway bonds ahead

The transportation sector has been in the market with several deals over the past few days, and that will be the case again this week.

Tuesday will bring a $340 million revenue refunding bond sale from the Illinois State Toll Highway Authority.

RBC Capital Markets Inc. and Siebert Brandford Shank & Co. LLC are the senior managers for the bonds, which are due 2031 to 2032.

Proceeds will refund the authority’s series 1998B, 2007A and 2008A bonds.

Indiana power deal planned

In other upcoming deals, the Indiana Municipal Power Agency is ready to price $404 million of series 2015 tax-exempt refunding bonds through Citigroup Global Markets Inc. Pricing is scheduled for Thursday.

Proceeds will be used to refund existing debt.

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