Muni yields continue to firm to record lows; Sacramento County brings $130.93 million in bonds

By Sheri Kasprzak

New York, Aug. 11 - Municipal yields yet again hit record lows on Wednesday, said a trader, as Treasury note yields also slide to record-low levels.

"There's no doubt that we're following along with Treasuries," he said.

"I think there's a lot of inflation fear out there that seems to be shoving both Treasury and fixed-income yields down. It's kind of unfortunate that this is happening now, because issuers should be out there, but it's a slow time of the year. Maybe it will encourage some issuers to come to market now before the usual rush at the end of the year. We'll see what happens."

Meanwhile, in primary action Wednesday, Sacramento County in California sold $130.93 million in series 2010 airport system senior revenue bonds, said a term sheet.

The bonds (A2/A/) were sold through Morgan Stanley & Co. Inc. and J.P. Morgan Securities Inc.

The bonds are due 2012 to 2028 with term bonds due 2030 and 2040. The serial coupons range from 2% to 5%. The 2030 bonds have a 5% coupon priced at 102.575. The 2040 bonds have a 5% coupon priced at par.

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.

Michigan housing deal prices

Elsewhere, the Michigan State Housing Development Authority priced $118.925 million in series 2010 rental housing revenue bonds, said a pricing sheet.

The offering included $87.79 million in series 2010A tax-exempt bonds and $31.135 million in series 2010B federally taxable bonds.

The bonds (/AA/) were sold through Bank of America Merrill Lynch and JPMorgan as the senior managers.

The 2010A bonds are due 2011 to 2020 with term bonds due 2025, 2030, 2035, 2040 and 2046. The serial coupons range from 1% to 3.45%. The coupon is 4.375% for the 2025 bonds, 4.875% for the 2030 bonds, 5% for the 2035 bonds, 5.125% for the 2040 bonds and 5.25% for the 2046 bonds. All of the bonds priced at par.

The 2010B bonds are due 2015 and 2019. The 2015 bonds have a 3.3% coupon priced at par, and the 2019 bonds have a 4.825% coupon priced at par.

Proceeds will be used to finance newly originated mortgages, which will be used to construct, finance, acquire or rehabilitate authority housing programs.

The Lansing-based authority provides mortgage loans to low- and moderate-income families.

Oklahoma refunding bonds sold

The Oklahoma Capitol Improvement Authority brought $116.365 million in series 2010 state facilities refunding revenue bonds, said a term sheet.

The offering included $86.26 million in series 2010A tax-exempt bonds and $30.105 million in series 2010B federally taxable bonds.

The 2010A bonds are due 2015 to 2018 with coupons from 2% to 5%. The 2010B bonds are due 2014 to 2015 with coupons from 2.026% to 2.476% priced at par.

RBC Capital Markets Corp. was the senior manager for the bonds (Aa3/AA/).

Proceeds will be used to refund the authority's series 2005F bonds, which were used to fund higher education projects.

Based in Oklahoma City, the authority finances the construction of state buildings.

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