Munis end week flat as weather, lack of primary activity stall market; $2.5 billion ahead

By Sheri Kasprzak

New York, Jan. 3 - Municipals had another lazy session on Friday, ending the session flat as Thursday's snow and extreme cold and an already-slim new-issue calendar left little to push yields, market insiders said. Yields remained unchanged despite some weakness in the Treasuries market.

The week ahead will also offer little in the way of supply with only $2.5 billion of new issues expected.

Some weakness in Treasuries, as investors pull their money from bonds, seemed to have little impact on munis. The five-year Treasury note yield climbed by 1.5 basis points to end the session at 1.741%, and the 10-year note yield rose by half a basis point to close at 2.997%. The 30-year bond yield climbed to 3.926%.

San Francisco school deal set

On the very light new issue calendar for the week ahead, the San Francisco Unified School District will bring $205 million of Proposition A, election of 2011, series 2014B general obligation bonds (Aa2/AA-/) competitively on Thursday.

The district intends to use the proceeds for its school building fund.

Another school district offering, this one from the Leon County School District of Florida, is slated to price Wednesday.

That district plans to price $75 million of series 2014 sales tax revenue bonds (Aa3//AA) competitively.

Proceeds will be used to acquire, construct, improve and renovate school facilities within the district.

Ohio to sell G.O. bonds

Another major offering for the light week comes from the State of Ohio, which intends to sell $150 million of series 2014A infrastructure improvement general obligation bonds, also through competitive sale.

The bonds are due 2015 to 2034.

Proceeds will be used to finance capital improvements of local subdivisions.

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