Munis firm; University of Texas brings $240.34 million; San Francisco school district prices

By Sheri Kasprzak

New York, Jan. 9 - Municipals were better across the yield curve on Thursday, traders said, and Treasuries also improved thanks to the successful auction of $13 billion of 30-year bonds.

Yields improved by 2 basis points to 3 bps across the curve, said a trader reached in the late afternoon.

"Supply is again low, and it's not looking like it will pick up next week," the trader said.

According to another market source, January reinvestment activity is also having an impact on yields throughout the week.

Meanwhile in the Treasuries market, the 30-year bond yield fell by 3.5 bps following the auction, and the 10-year note yield fell by 3 bps. The five-year note yield fell by a basis point.

U of Texas bonds price

Heading up Thursday's pricing activity, the University of Texas System sold $240.34 million of series 2014A permanent university fund bonds.

The bonds (Aaa/AAA/AAA) were sold through J.P. Morgan Securities LLC and BofA Merrill Lynch.

The bonds are due July 1, 2041, bear interest at 5% and priced at 105.595 to yield 4.27%, said a pricing sheet.

Proceeds will be used to refund existing taxable commercial paper notes.

San Francisco district sells debt

Also during the session, the San Francisco Unified School District sold $205 million of Proposition A, election of 2011, series 2014B general obligation bonds.

The bonds (Aa2/AA-/) were sold competitively, but the district's chief financial officer didn't respond to requests for the winning bidder Thursday.

The bonds are due 2016 to 2033 and have 4% to 5% coupons, according to a term sheet.

Proceeds will be deposited into the school district's school building fund.

Princeton brings bonds

In other primary activity, the New Jersey Educational Facilities Authority came to market with $200 million of series 2014A revenue bonds for Princeton University.

The bonds (Aaa/AAA/) were sold competitively.

The bonds are due 2016 to 2029 with a term bond due in 2044. The serial coupons range from 4% to 5% with 0.385% to 3.55% yields. The 2044 bonds have a 5% coupon and priced at 107.414 to yield 4.12%, according to a pricing sheet.

Proceeds will be used to finance capital improvements at the university.

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