Munis end flat to slightly weaker; primary deals build; New York City to sell $750 million

By Sheri Kasprzak

New York, March 15 - Municipal yields were mostly unchanged Monday with spots of weakness noted by market insiders.

"We're pretty much flat, but yields might be off a touch in spots," said one trader. "It's been a quiet day. If yields are up at all, it's no more than a basis point."

Another trader said he'd call the market unchanged.

California's recently priced various-purpose general obligation bonds were seen trading in the secondary market Monday. The 4.125% 2019 bonds were trading at a 3.829% yield. The 4.5% 2021s were seen at a 4.251% yield, and the 5% 2022s were trading at a 4.818% yield.

Looking to the week's primary action, the City of New York will lead the action with its $750 million sale of series 2010G G.O. bonds. That sale is set for Thursday following a retail order period scheduled for Wednesday.

The offering includes $660 million in series 2010G-1 Build America Bonds, $75 million in series 2010G-2 taxable bonds and $15 million in series 2010G-3 tax-exempt bonds, according to a preliminary official statement.

The bonds (Aa3/AA/AA-) will be sold on a negotiated basis with Siebert Brandford Shank & Co. LLC as the senior manager.

All of the bonds are due 2010 to 2027 with term bonds, the exact due dates of which have not been set.

Proceeds will be used to fund capital expenditures.

New York MTA sale planned

Another major offering for the week also comes out of the Big Apple. The Metropolitan Transportation Authority of New York is scheduled on Wednesday to bring $500 million in series 2010 dedicated tax fund bonds.

The lead managers are J.P. Morgan Securities Inc. and Ramirez & Co. Inc.

The MTA is expected to use the proceeds to fund commuter projects.

New York water deal ahead

Yet another deal from the city is planned for Tuesday. The New York City Municipal Water Finance Authority is set to price $360 million in series 2010FF water and sewer system second general resolution revenue bonds through M.R. Beal & Co.

Proceeds from the bonds (Aa3/AA+/AA) will be used to redeem existing first or second resolution bonds.

Also coming up on Tuesday, the Orlando-Orange County Expressway Authority in Florida plans to price $350 million in series 2010A revenue bonds (A1/A/A) through JPMorgan.

The authority plans to use the proceeds to fund construction projects in its five-year plan.

D.C. to sell $126.75 million bonds

On the horizon, the District of Columbia is expected to price $126.75 million in series 2010C adjusted Sifma rate income tax secured revenue refunding bonds, according to a preliminary official statement.

The bonds (Aa2/AAA/AA) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the lead manager.

The bonds are due 2010 to 2011.

Proceeds will be used to refund the district's series 2008B bonds.

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