Munis hold steady; week’s remaining bonds price; Wayne County, Mich., brings notes at 6% yield

By Sheri Kasprzak

New York, June 25 – Municipals remained flat on the day Thursday as the remainder of the week’s deals came to market, insiders said.

The 10-year triple-A muni bond closed at 2.36% and the 30-year at 3.33%, traders reported.

Munis largely ignored a slump for Treasuries, which were pushed back down on renewed optimism that Greece will reach a deal with its creditors before its deadline. If no agreement is reached by June 30, the nation will default on $1.8 billion of debt to the International Monetary Fund.

On this news, the 10-year benchmark Treasury note yield rose by 2 basis points to close at 2.40%, and the five-year yield rose by 1 bp to 1.70%. The 30-year bond yield held steady at 3.16%.

Wayne County notes price

Heading up the day’s primary activity, Wayne County, Mich., came to market with $187,995,000 of series 2015 general obligation limited tax notes. The offering was upsized from $186.9 million.

The notes (/SP-1/) are due Dec. 1, 2017, have a 5.75% coupon and priced at 99.438 to yield 6%.

The notes had been slated to price last week, but the troubled county, which teeters on bankruptcy and has been in talks to cut pensions, county employee health benefits and wages, postponed the offering as it looks to hire an emergency manager.

BofA Merrill Lynch brought the notes to market Thursday.

The county intends to use the proceeds to cover in whole or part delinquent property taxes. Detroit is the county seat.

Arlington ISD sells debt

In other pricing action, the Arlington Independent School District of Texas offered $220.3 million of series 2015 unlimited tax school building bonds.

The bonds (Aa1/AA/) were sold through Raymond James/Morgan Keegan.

The bonds are due 2016 to 2040 with coupons from 1% to 5%.

Proceeds will be used to finance the construction, equipment, acquisition and improvement of school buildings and facilities.

The district hit the market around this time last year with $159,485,000 of debt. Those bonds are due 2015 to 2039 with 1% to 5% coupons and yields from 0.105% to 3.22%.

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