Munis end day flat ahead of just $4 billion of new deals; Washoe County, Nev., deal coming up

By Sheri Kasprzak

New York, March 25 - Municipals were largely unmoved to start out the short week, market sources said, and with just $4 billion of new deals predicted, little movement is expected.

"Trading is quiet," one trader said early in the afternoon.

"I fully expect it to remain that way. Supply is light, there really aren't any huge deals coming up, so I suspect it's going to be pretty much flat for the week unless there's some headline that moves us in one direction or another. Just going on supply, it's a light week."

Meanwhile, for the week ended March 22, 10-year AAA benchmark muni yields fell 3 basis points to 1.94% and the 30-year yield was off a basis point, closing out Friday at 3.1%, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

"Primary market municipal volume is expected to be slim this holiday-shortened week, as an early close Thursday and a Good Friday holiday threaten demand," Kozlik said Monday.

"Currently, the forward calendar, including negotiated and competitive issues, looks like it is about $4 billion."

Two Ohio deals set

Two of the larger offerings of the week are both out of Ohio. The bulk of the deals in the week ahead will be smaller than $250 million.

The Northeast Ohio Regional Sewer District plans to sell $245.26 million of series 2013 wastewater improvement revenue bonds (Aa1) through Siebert Brandford Shank & Co. LLC.

The district intends to use the proceeds from its sale to finance various system improvements.

Additionally, Franklin County, Ohio, will sell $210.29 million of series 2013 hospital facilities revenue refunding bonds (Aa2/AA+/AA) for OhioHealth Corp.

That deal will price during the week through Barclays.

Proceeds from the deal will be used to construct, equip, acquire and renovate hospital facilities.

Washoe bonds to price

On Monday, a retail order period was conducted for $150 million of series 2013 highway fuel tax revenue bonds from Washoe County, Nev.

The bonds (A1/A+/) will price for institutional investors on Tuesday with RBC Capital Markets LLC and J.P. Morgan Securities LLC.

Proceeds from that deal will be used to finance the costs of highways and streets for the Regional Transportation Commission of Washoe County.

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