Municipals retain firmer tone ahead of $7 billion new deals; New Jersey, Wisconsin plan deals

By Sheri Kasprzak

New York, April 19 - Municipals were firm again on Friday as the market prepared for a slightly smaller slate of new issues for the week ahead, traders reported.

"The tone is firmer, but there's really not enough to move yields by that much," a trader said.

"Trading is pretty light, and there's very little pricing today. Right now, we're looking to next week and seeing what's coming up."

The coming week looks like it will be quieter than the past week, according to Alan Schankel, managing director with Janney Montgomery Scott LLC.

"Next week's new issue slate, at under $7 billion, is lighter than the past two weeks, with all issues announced so far below $500 million," he said Friday.

"Wisconsin, New Jersey and Ohio will all offer competitive issues."

Meanwhile, Lipper reported $535 million of municipal fund outflows for the week ended April 17, said Schankel.

"Lipper data is less comprehensive but more timely than ICI, which reported $857 million in outflows in the week ending April 10," Schankel said.

"Next week's data will shed light on whether outflows reflect selling to make April 15 tax payments or less enthusiasm on the part of retail investors."

Wisconsin leads offerings

Among the largest deals of the week is a $434,525,000 issue from the State of Wisconsin. The state will sell series 2013A general obligation bonds competitively on Tuesday.

The bonds are due 2014 to 2033.

Proceeds will be used to acquire, construct, develop, extend, enlarge and improve land, water, property, highways, buildings, equipment or facilities for public purposes.

Elsewhere out of Wisconsin, the City of Milwaukee is prepared to price $203,355,000 of series 2013 G.O. promissory notes and G.O. corporate purpose bonds (/AA/SP-1+/) competitively on Tuesday.

The deal includes $100 million of series 2013-R1 G.O. cash flow promissory notes, $85,635,000 of series 2013-N2 G.O. promissory notes and $17.72 million of series 2013-B3 G.O. corporate purpose bonds.

New Jersey plans deal

Also coming up on Tuesday, the State of New Jersey is set to price $350 million of series 2013 various purpose G.O. bonds. The bonds will be sold competitively, and proceeds from the deal will be used to finance various capital projects in the state.

In other pricing action Tuesday, the Louisville and Jefferson County Metropolitan Sewer District of Kentucky is gearing up to price $230 million of series 2013 sewer and drainage revenue bonds competitively.

Proceeds will be used to refund the district's series 2001A, 2004A and 2005A revenue bonds, which were initially issued to finance sewer system improvements.

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