Municipals improve; Virginia College Building prices revenue bonds; Ohio brings G.O. bonds

By Sheri Kasprzak

New York, May 1 - Municipal prices climbed on Thursday along with Treasuries as the last of the week's offerings wrapped, said traders.

Intermediate yields were lower by about 3 basis points to 5 bps, and short bond yields fell by a basis point.

Meanwhile, Treasuries got a boost as market insiders awaited Friday's nonfarm payrolls report. The 30-year Treasury bond yield fell by 5 bps to close the day at 3.41%, and the 10-year note yield fell by 3 bps to 2.613%.

After the difficult winter, many market insiders are waiting to see if hiring picked up now that spring is under way. Economists anticipate that nonfarm payrolls will have expanded by 215,000.

Virginia college bonds price

Heading up Thursday's primary action, the Virginia College Building Authority sold $347.14 million of series 2014 revenue and refunding bonds.

The bonds (//AA+) were sold competitively. Citigroup Global Markets Inc. won the bid.

The deal included $319,155,000 of series 2014A revenue bonds and $27,985,000 of series 2014B refunding bonds, said a pricing sheet.

The 2014A bonds are due 2015 to 2034 with 3% to 5% coupons and 0.13% to 3.72% yields.

The 2014B bonds are due 2015 to 2020 with a term bond due in 2025. The serial bonds have 5% coupons with yields from 0.13% to 1.60%. The 2025 bonds have a 4% coupon and priced at 113.012 to yield 2.60%.

Proceeds will be used to finance capital projects and acquire equipment at higher education institutions within the state and to refund a portion of outstanding education facilities revenue bonds.

Ohio sells G.O. bonds

Elsewhere, the State of Ohio hit the market with $338,575,000 of series 2014 general obligation refunding bonds in a three-tranche deal.

The deal included $162,415,000 of series 2014A common schools G.O. refunding bonds, $116.29 million of series 2014B higher education G.O. refunding bonds and $59.87 million of series 2014C infrastructure improvement G.O. refunding bonds, said a pricing sheet.

The 2014A bonds are due 2018 to 2023 with 5% coupons and yields from 1.14% to 2.37%. The 2014B bonds are due 2018 to 2024 with 5% coupons and 1.12% to 2.49% yields. The 2014C bonds are due 2018 to 2024 with 5% coupons and yields from 1.09% to 2.50%.

The bonds (Aa1/AA+/AA+) were sold competitively.

Proceeds will be used to refund the state's series 2006D and 2007A common schools G.O. bonds, its series 2006A-B higher education G.O. bonds and its 2005A, 2006A and 2007A infrastructure improvement G.O. bonds.

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