Municipals flat ahead of much-lighter calendar; Polk County, Iowa, sells $92.11 million bonds

By Sheri Kasprzak

New York, April 27 – Municipals were mostly flat on Monday as the market awaited a much more subdued new-issue slate, traders said.

Yields were unchanged, said a trader in the afternoon.

Munis mostly ignored a mixed Treasuries market as yields on the 30-year Treasury bond yield fell by 1 basis point and the 10-year note yield fell by 1 bp.

Massachusetts to sell Thursday

Looking to the upcoming offerings, about $5.8 billion of new deals are set to price this week. The offerings will be led by a $550 million sale of series 2015 general obligation bonds from Massachusetts, which is on tap to price Thursday.

The bonds (Aa1/AA+/AA+) will be sold competitively with Public Resources Advisory Group as the financial adviser.

The deal includes $100 million of series 2015A consolidated loan G.O. bonds and $450 million of series 2015B consolidated loan G.O. bonds.

The 2015A bonds are due 2019 to 2025, and the 2015B bonds are due 2035 to 2045.

Proceeds will be used to finance capital expenditures for the commonwealth.

Polk County brings G.O. bonds

Heading up the day’s light primary activity, Polk County, Iowa, hit the market Monday with a $92.11 million competitive offering.

The deal included $18,135,000 of series 2015 G.O. bonds and $73,975,000 of series 2015B G.O. bonds.

The 2015A bonds are due 2016 to 2025 with 2% to 2.25% coupons.

The 2015B bonds are due 2016 to 2035 with 3% to 3.75% coupons.

The bonds (Aaa/AAA/) were sold competitively with Robert W. Baird & Co. winning the series 2015A bonds at a 1.74% true interest cost and Citigroup Global Markets Inc. taking the 2015B bonds at a 3.07% TIC, said Deb Anderson, budget manager for the county’s Board of Supervisors.

“The county has historically sold its G.O. debt competitively and did not consider other factors in deciding to hold a competitive sale,” Anderson said in an interview.

Proceeds will be used to finance the acquisition, construction and improvement of storm water management systems.

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