Munis see strong action on reinvestment money; activity high ahead of key market report

By Cristal Cody

Prospect News, Feb. 2 - Municipal bonds saw strong market action on Thursday ahead of the Labor Department's monthly non-farm payroll report due early Friday.

"There seems to be a lot of reinvestment money coming into the market," a trader said. "Feb. 1 is a big coupon payment date, and we saw a very strong close today all across the board. People kept buying all day today, which is highly unusual before a big number tomorrow."

Municipal bonds traded 3 basis points to 4 bps stronger across the curve.

"I didn't see any weakness even with the government market down in the morning," the trader said. "There was a lot of activity, and people wanted to position paper. That tells me people are having trouble keeping paper in house."

Primary supply has remained light as January ended and February began.

Oklahoma authority plans deal

One new offering is expected from the Oklahoma County Financing Authority in Oklahoma City.

The authority intends to sell $72.08 million of educational facilities lease revenue bonds for the Midwest City-Del City Public Schools project, according to a preliminary official statement.

The series 2012 bonds (/A+/) have serial maturities from 2013 through 2019.

D.A. Davidson & Co. is the bookrunner for the negotiated sale.

Proceeds will be used to pay for the costs to construct, equip, repair and remodel school buildings and acquire and improve school sites.

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