Municipals end unchanged to close a short week; Texas Transportation preps G.O. bond offering

By Sheri Kasprzak

New York, Sept. 11 – Municipals wrapped up the holiday-shortened week flat, traders reported.

Munis largely ignored a rally for Treasuries as the market waits for the official rate-hike word from the Federal Open Market Committee, which will make its decision on Thursday.

Over in Treasuries, the 10-year note yield fell by 7 basis points to end the week at 2.20%, the 30-year bond yield fell by 3 bps to 2.95%, the five-year note yield fell by 3 bps to 1.52%, and the two-year yield fell by 4 bps to 0.71%.

New-issue supply is expected to remain around $5 billion for the week ahead.

Moving to outflows, municipal mutual funds lost $96 million of assets during the week ending Sept. 9.

Texas Transportation sets deal

Heading up pricing action for the week ahead, the Texas Transportation Commission is scheduled to price $750 million of series 2015A mobility fund general obligation refunding bonds (Aaa//AAA).

The bonds will be sold through J.P. Morgan Securities LLC and Piper Jaffray & Co.

The bonds are due 2016 to 2036.

Proceeds will be used to refund existing bonds for debt service savings.

OSF bonds ahead

Also coming up this week, the Illinois Finance Authority is slated to price $368,075,000 of series 2015A revenue bonds (A2/A/A) for the OSF Healthcare System.

The offering will be conducted through Barclays and Jefferies & Co.

Proceeds will be used to construct, improve, equip and renovate OSF facilities and to refund the authority’s series 2007A, 2009A and 2009E revenue bonds.

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