Municipal yields improve slightly; Texas Transportation Commission sets $1.5 billion sale

By Sheri Kasprzak

New York, July 9 - Municipal yields were seen slightly better to unchanged to round out the short week, said a trader, even as Treasuries dipped.

"We're feeling a little better today but only by a basis point or so," said the trader.

"[Secondary] is still pretty quiet. It's summer, so maybe that's part of it. There is a summer feeling to the market in general. A little slower, we're kind of stuck in a range. It seems to be a bit of a trend. We'll get a little better, hold for a while and then slip. We just can't seem to hold gains for an extended time or continue making gains."

Meanwhile, the Delaware River Port Authority of New Jersey priced $308.375 million in series 2010E revenue bonds on Thursday, said a pricing sheet.

The bonds (A3/A-/) were sold through Citigroup Global Markets Inc.

The bonds are due 2027 to 2030 with term bonds due 2035 and 2040. The serial bonds have 5% coupons. The term bonds have split maturities. The 2035 bonds have a 5.05% coupon priced at par and a 5% coupon priced at 99.299. The 2040 bonds have a 5% coupon priced at 100.823 and a 5% coupon priced at 98.631.

Proceeds will be used to finance the authority's capital-improvement program.

Based in Camden, N.J., the authority maintains and develops the Camden-Philadelphia port district, which links New Jersey and Pennsylvania with four bridges, mass transit and a ferry.

Texas road bonds ahead

Looking to upcoming sales, the Texas Transportation Commission plans to sell $1.5 billion in series 2010 state highway fund first-tier revenue bonds, said a preliminary official statement.

The offering includes $115.565 million in series 2010A tax-exempt bonds and $1.384 billion in series 2010B Build America Bonds.

The bonds (Aaa/AAA/) will be sold on a negotiated basis with Goldman, Sachs & Co. as the lead manager.

Proceeds from the sale will be used to construct and improve state highways.

D.C. airports plan sale

Elsewhere, the Metropolitan Washington Airports Authority is set to sell $387 million in series 2010 airport system revenue and refunding bonds, said a preliminary official statement.

The sale includes $215 million in series 2010A non-AMT revenue bonds and $172 million in series 2010B AMT refunding bonds.

The bonds (//AA) will be sold on a negotiated basis with Barclays Capital Inc. and J.P. Morgan Securities Inc. as the senior managers.

The authority plans to use the proceeds to refinance a portion of its outstanding commercial paper and to fund capital projects.

The Washington, D.C.-based authority operates the Washington Dulles International Airport and the Reagan National Airport.

Houston preps port deal

Also coming up, the Port of Houston Authority of Texas is set to sell $300 million in series 2010 improvement and refunding bonds, said a preliminary official statement.

The sale includes $250 million in series 2010D unlimited tax port improvement and refunding bonds and $50 million in series 2010E unlimited tax refunding bonds.

The bonds will be sold through senior manager Bank of America Merrill Lynch.

Proceeds from the sale will be used to finance improvements to the city's port and to refund existing debt.

The authority oversees the handling of general cargo shipped to the city's port.

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