Muni yields firm by 1 to 2 bps as California Department of Water extends retail order period

By Sheri Kasprzak

New York, May 4 - Municipal yields firmed slightly on Tuesday as primary action continued to dominate investor interest, market insiders reported.

"Short to intermediate bonds are down by about 1 or 2 bps," said one trader reached during the afternoon.

"Everything else is holding pretty steady. Trading volume was fairly light. There was some interest in a few things, but overall kind of quiet."

Meanwhile, the California Department of Water Resources extended the retail order period for its $2 billion sale of series 2010L power supply revenue bonds to a second day.

"There's been good interest so far," said the sellsider, who is connected to the deal.

"We've sold more than half, so it looks like it might upsize. We'll see how it goes for institutional."

Morgan Stanley & Co. Inc., E.J. De La Rosa & Co. Inc. and J.P. Morgan Securities Inc. are the senior managers.

The bonds (Aa3/AA-/AA-) are due 2011 to 2022.

The department plans to use the proceeds to refund existing debt.

Tampa sells $200.26 million

Meanwhile, during Tuesday's primary session, the City of Tampa in Florida sold $200.255 million in series 2010 revenue bonds for Baycare Health System, said a pricing sheet.

The bonds (Aa3//AA-) were sold through Morgan Stanley.

The bonds are due 2010 to 2011 and from 2015 to 2023. The coupons range from 2% to 5%. The full pricing terms were unavailable by press time.

Proceeds will be used to refund the city's outstanding series 1998A1 Catholic Health revenue bonds.

Long Island Power prices

Also on Tuesday, the Long Island Power Authority of New York priced $200 million in series 2010A tax-exempt revenue bonds, said a pricing sheet.

The bonds were also sold through Morgan Stanley.

The bonds are due 2014 to 2015 with 2.5% to 5% coupons.

Proceeds will refund existing debt.

Based in Uniondale, N.Y., the authority acquires real property for electric power infrastructure as well as purchases power from the Power Authority of the State of New York.

Delaware prices $124.03 million

Elsewhere in the Northeast, the State of Delaware sold $124.025 million in series 2010A general obligation bonds, said a term sheet.

The bonds (Aaa/AAA/AAA) were sold through Morgan Stanley.

The bonds are due 2011 to 2020 with 1.5% to 5% coupons. The full pricing details were not immediately available.

Proceeds will be used to redeem outstanding G.O. bonds.

Orange sanitation sale planned

Looking to the coming week, the Orange County Sanitation District of California is set to sell $80 million in series 2010A wastewater revenue obligation Build America Bonds on May 11, said a notice of sale.

The bonds (/AAA/AAA) will be sold competitively with Public Resources Advisory Group as the financial adviser.

Proceeds from the sale will be used to fund the construction, acquisition and installation of improvements to the district's wastewater collection, treatment and disposal facilities.

Based in Fountain Valley, Calif., the district is responsible for wastewater collection, treatment and disposal.

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