Municipals continue to gain following Treasury rally; Oklahoma Capitol Improvement brings deal

By Sheri Kasprzak

New York, March 27 - Municipals improved yet again on Thursday along with Treasuries as the last of the week's offerings hit the market, market insiders reported.

"There's virtually no supply pressure, and it looks like pressure will be relatively low for the foreseeable future," a trader said in the early afternoon.

Yields were reportedly down by 2 basis points to 4 bps, pretty much in line with Treasuries Thursday afternoon following a seven-year Treasury note auction. The 30-year Treasury bond yield fell by 5 bps to 3.493%, and the 10-year note yield fell by 2 bps to 2.665%. The five-year note yield, which has been volatile recently on monetary policy, remained flat at 1.702%.

Oklahoma deal prices

Leading Thursday's primary action, the Oklahoma Capitol Improvement Authority hit the market with $220,725,000 of series 2014A state facilities revenue refunding bonds.

The bonds (/AA/AA) were sold through Citigroup Global Markets Inc.

The bonds are due 2015 to 2030 with 2% to 5% coupons and 0.28% to 3.86% yields, according to a pricing sheet.

Proceeds will be used to refund the authority's series 2005A-F revenue bonds.

Virginia brings debt

In other pricing action, the Commonwealth of Virginia priced $133.81 million of series 2014 general obligation bonds.

The deal included $68.98 million of series 2014A G.O. bonds and $64.83 million of series 2014B G.O. refunding bonds, said a pricing sheet.

The 2014A bonds are due 2015 to 2034 with 2% to 5% coupons and 0.15% to 3.50% yields.

The 2014B bonds are due 2015 to 2020 with coupons from 2% to 5% and 0.15% to 1.68% yields.

The bonds were sold competitively.

Proceeds will be used to finance capital projects and to refund the state's series 2004B G.O. bonds.

In February 2013, the commonwealth sold $236.23 million of G.O. bonds in a two-tranche deal. The bonds had coupons from 2% to 5% with yields from 0.25% to 3.00%.

Nevada deal set

Looking to the coming week, the State of Nevada is on tap to price $61,745,000 of series 2014 G.O. bonds (Aa2/AA/AA+) competitively. The pricing is scheduled for Wednesday.

The four-tranche deal will be offered to finance capital projects and open space and recreational facility improvements as well as to refund the state's series 2005B G.O. bonds.

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