Municipals trade mixed as snow stalls action; Pennsylvania postpones $1 billion of G.O.s

By Sheri Kasprzak

New York, Jan. 26 – Municipals were mixed to close out a session slowed substantially by Monday’s Northeastern snowstorm, market sources said.

Yields on the short end were higher by 1 basis point to 2 bps, while the long end saw some firmness.

The market awaits about $6.5 billion of new deals, down substantially from last week’s $9 billion slate.

Meanwhile, municipal fund inflows were at $97 million last week compared to $1.34 billion the prior week, according to data from the Investment Company Institute.

Treasuries were also stalled by the snowstorm with yields climbing across the curve. The five-year note yield rose by 3 bps, and the 10-year note and 30-year bond yields both rose 2 bps.

Pennsylvania postpones G.O.s

Although the State of Pennsylvania was expected to hit the market Tuesday with $1 billion of first series 2015 general obligation bonds, the offering was postponed due to the snowstorm. The new date was not immediately available Monday.

The bonds will be sold competitively with Public Financial Management Inc. as the financial adviser.

The bonds are due 2016 to 2035.

Proceeds will be used to finance capital projects.

Utah deal to go ahead

The second-largest deal of the week, the Utah Transit Authority’s $831.64 million of series 2015 revenue refunding bonds, was still set to go.

The deal includes $639.43 million of series 2015A sales tax revenue refunding bonds and $192.21 million of series 2015B subordinated sales tax bonds.

Morgan Stanley & Co. LLC is the senior manager for the bonds (Aa2).

Proceeds will be used to refund the authority’s series 2007A, 2008A, 2009A and 2012A revenue bonds initially issued for capital projects.

Kentucky offering set

Also coming up during the week, the Kentucky State Property and Buildings Commission is expected to price $385,155,000 of series 2015 revenue bonds (Aa3/A+/) through Citigroup Global Markets Inc. and Morgan Stanley.

The offering includes $128.45 million of series 2015A Project No. 108 bonds and $256,705,000 of series 2015B Project No. 108 revenue refunding bonds.

Proceeds will be used to refund the commission’s series 2005 Kentucky Asset/Liability Commission project notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.