Muni yields rise with Treasuries as FOMC meets; Pennsylvania offers $834.45 million G.O. bonds

By Sheri Kasprzak

New York, April 29 - Municipal yields were higher on the session, moving along with Treasuries as the Federal Open Market Committee's April meeting got under way, market insiders said.

Yields were higher by about 2 basis points Tuesday, said a trader.

Meanwhile, Treasuries felt the pressure of some large corporate debt offerings and the anticipation of some major data later in the week, including first-quarter gross domestic product and nonfarm payrolls.

The 30-year Treasury bond yield rose by 3 bps to end at 3.493%, and the 10-year note yield climbed by 2 bps to 2.697%. The five-year note yield also rose by 2 bps to 1.746%.

Pennsylvania offers G.O. bonds

Moving to the day's primary activity, the Commonwealth of Pennsylvania hit the market with $834.45 million of series 2014 general obligation bonds, the largest offering of the week.

The sale included $545 million of first series 2014 bonds and $289.45 million of first refunding series 2014 bonds, said a pricing sheet.

The first series bonds are due 2015 to 2034 with 4% to 5% coupons.

The refunding bonds are due 2015 to 2024 with 5% coupons.

The bonds (/AA/AA) were sold competitively with BofA Merrill Lynch winning the bid.

Proceeds will be used to finance capital improvement projects throughout the state and to refund the state's series 2003, 2004, 2005, 2006 and 2007A-B G.O. bonds.

Maryland water bonds price

In other pricing action, the Maryland Water Quality Financing Administration sold $100 million of series 2014 bay restoration fund revenue bonds.

The bonds (Aa2/AA/) were sold competitively. J.P. Morgan Securities LLC won the bid at a 2.5468% true interest cost, said Jag Khuman, director of the administration.

"The administration can sell either negotiated or competitive and choose to sell competitively," Khuman said.

The bonds are due 2016 to 2029 with 3% to 5% coupons and 0.32% to 3.18% yields, said a pricing sheet.

Proceeds will be used to make grants to local governments to finance upgrades to wastewater facilities.

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