Municipals steady even as Treasuries dip ahead of $7.2 billion slate; California G.O.s ahead

By Sheri Kasprzak

New York, April 18 – Municipals rounded out a quiet session unchanged as the market awaits about $7.2 billion of new offerings, market insiders said.

Treasuries, meanwhile, took a hit with the 30-year and 10-year yields rising by 2 basis points each as Federal Reserve president William Dudley said economic news was “favorable.”

Municipals stayed flat with the 10-year and 30-year triple-A bond yields at 1.70% and 2.68%, respectively.

California readies G.O. bonds

Looking to the week’s supply, the State of California is ready to price $1,488,795,000 of series 2016 various purpose general obligation bonds (Aa3/AA-/A+) competitively on Tuesday.

The deal includes $236,795,000 of taxable G.O. bonds, $232.2 million of tax-exempt G.O. bonds and $1,019,800,000 of tax-exempt G.O. refunding bonds.

Proceeds will be used to finance capital projects, pay outstanding G.O. commercial paper notes and current refund the state’s series 2013A highway safety, traffic reduction, air quality and port security bonds.

Texas Transportation ahead

Also coming up on Tuesday, the Texas Transportation Commission is scheduled to price $615 million of highway improvement G.O. bonds.

The bonds (Aaa/AAA/AAA) will be sold through BofA Merrill Lynch.

The bonds are due 2017 to 2036 with term bonds due in 2041 and 2046.

Proceeds will be used to pay for or reimburse the state for highway capital projects.

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