Municipals slide after Treasuries dip on data; California brings $960.96 million of G.O. bonds

By Sheri Kasprzak

New York, Oct. 20 – Municipals edged lower on Tuesday after Treasuries hit a snag, market insiders said, with yields on top-rated munis rising as much as 2 basis points.

Meanwhile, over in Treasuries, yields were up as much as 5 bps after housing starts reportedly rose 6.5% for September.

It was a busy day for pricings, including retail order periods on some of the week’s largest deals.

The New York City Transitional Finance Authority priced $750 million of future tax secured bonds for retail investors with the 10-year maturity carrying an initial pricing of 5% to yield 2.29% and the 24-year long bonds pricing at a 3.625% coupon to yield 3.67%, said a source close to the deal.

The bond issue (Aa1/AAA/AAA) will total $1 billion and will price for institutions on Wednesday.

California sells bonds

Heading up the day’s primary action, the State of California reportedly sold $960.96 million of general obligation bonds.

The full details of the deal were not immediately available, but the bonds are due 2016 to 2034 with 3.25% to 5% coupons and yields from 0.08% to 3.50%.

The bonds (Aa3/AA-/A+) were sold competitively.

Proceeds will be used to finance capital improvements at public facilities, including schools, as well as to refund existing bonds.

Ohio offers G.O. bonds

Among the other substantial deals that priced Tuesday, the State of Ohio brought $300 million of series 2015C higher education general obligation bonds.

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

The bonds are due 2016 to 2035 with 2% to 5% coupons and yields from 0.32% to 3.01%.

Proceeds will be used to finance capital projects at state-supported or state-assisted institutions of higher education.

S.C. ports sell debt

In other news, the South Carolina Ports Authority sold $288,895,000 of series 2015 AMT revenue bonds.

The bonds (A1/A+/) were sold through senior managers BofA Merrill Lynch and Wells Fargo Securities LLC.

The bonds are due 2026 to 2035 with term bonds due in 2040, 2045, 2050 and 2055. The serial coupons range from 3.5% to 5% with 2.99% to 4.01% yields. The 2040 bonds have a 4% coupon and priced at 97.996 to yield 4.13%. The 2045 bonds have a 4% coupon that priced at 96.786 to yield 4.19% and a 5% coupon that priced at 108.191 to yield 3.97%. The 2050 bonds have a 5.25% coupon and priced at 109.34 to yield 4.07%, and the 2055 bonds have a 5.25% coupon and priced at 107.848 to yield 4.25%.

Proceeds will be used to finance capital improvements and expansions to the port system between 2016 and 2018.

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