Municipals flat to weaker as Treasuries slide; Massachusetts Bay Transportation prices bonds

By Sheri Kasprzak

New York, July 20 – Municipals were steady to slightly weaker on the session Wednesday after Treasuries edged lower, market insiders said.

The 10-year triple-A muni bond yield rose by 1 basis point to 1.48%, and the 30-year bond yield remained at 2.26%.

Meanwhile, Treasuries took a hit when stocks got a boost, market sources said.

The 30-year Treasury bond and 10-year note yields rose by 3 bps to 2.30% and 1.59%, respectively. The five-year note yield rose 3 bps to 1.15%, and the two-year yield edged 3 bps higher to 0.73%.

Massachusetts Bay bonds price

Moving to new-issue action, the Massachusetts Bay Transportation Authority hit the market with $407,475,000 of series 2016A senior sales tax bonds. The deal was upsized from $226,469,251.

The deal included $119.28 million of series 2016A assessment bonds and $288,195,000 of series 2016A capital appreciation bonds.

The assessment bonds are due 2024 to 2028 with 2% to 5% coupons and yields from 1.35% to 2.00%.

The capital appreciation bonds are due 2021 to 2033 with 0% coupons and yields from 1.28% to 2.67%.

The bonds (Aa2/AA+) were sold competitively. The issuer did not respond to requests for the winning bidder.

Proceeds will be used to refund existing debt.

Port of Seattle sells debt

Elsewhere, the Port of Seattle, Wash., priced $249.22 million of series 2016 revenue refunding bonds.

The offering included $19,565,000 of series 2016A first-lien refunding bonds, $124.38 million of series 2016B first-lien refunding bonds, $99,095,000 of series 2016 intermediate lien bonds and $6.18 million of series 2016C taxable first-lien refunding bonds.

The 2016A bonds are due 2017 to 2019 with 3% to 5% coupons and yields from 0.58% to 0.78%.

The 2016B bonds are due 2019 to 2032 with 3% to 5% coupons and yields from 0.96% to 2.41%.

The 2016 intermediate bonds are due 2025 to 2030 with 4% to 5% coupons and 1.72% to 2.16% yields.

The 2016C bonds are due 2017 to 2032 with coupons from 1% to 3.32% and all priced at par.

The bonds (Aa2/AA-/AA) were sold through senior manager BofA Merrill Lynch.

Proceeds will be used to refund existing bonds.

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