Munis end quiet day flat ahead of sparse calendar; Portland competitive sale set for Tuesday

By Sheri Kasprzak

New York, Aug. 9 - Municipal yields were largely unmoved to kick off a relatively light week for new offerings, said a trader reached in the afternoon.

"It's definitely dead this week," said the trader.

"Nothing's moving today. It's going to be a tough week to get anything done. We've been getting a lot of reinvestments, but very little else is getting done in secondary, and now the new issues are barely trickling in. It's probably a good week to be on vacation."

Apart from a few deals under $500 million, the week's pricing activity will be slow.

Tuesday's light pricing action will be led by a $412.06 million sale of series 2010A second-lien sewer system revenue bonds from the City of Portland, Ore.

The city will sell the bonds (Aa3/AAA/) competitively with Public Financial Management Inc. as the financial adviser.

The bonds are due 2011 to 2035, and proceeds will fund capital facilities and improvements to the sanitary sewer and storm water drainage system. The rest will be used to repay a line of credit.

Ohio water bonds ahead

Also during the week, the Ohio Water Development Authority is expected to bring $451.355 million in series 2010B water pollution control loan fund revenue bonds (Aaa/AAA/) through Morgan Stanley & Co. Inc.

The proceeds from that deal will be used for the Water Pollution Control Loan Fund and to fund the debt service reserve fund for the series 2010B bonds.

Pittsburgh sports deal set

Coming up on Wednesday, the Sports and Exhibition Authority of Pittsburgh and Allegheny County of Pennsylvania is set to price $180 million in series 2010 regional asset district sales tax revenue bonds, said a sales calendar.

The bonds (Baa1) will be sold through senior manager PNC Capital Markets LLC.

Proceeds from the sale will be used to construct a hockey arena in the city.

Sacramento deal planned

In other upcoming sales, the County of Sacramento in California is expected to bring to market $130.93 million in series 2010 airport system senior revenue bonds (A2/A/) through Morgan Stanley and J.P. Morgan Securities Inc. The exact pricing date was not immediately available.

The proceeds will be used to finance the county's airport system's capital improvement program, which includes land acquisitions, facility improvements, building maintenance and federal and state grant processing.

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