Municipals remain flat despite a hit for Treasuries; St. Louis IDA brings $74.11 million bonds

By Sheri Kasprzak

New York, Nov. 4 – Top-rated municipals ignored another slip for Treasuries as the week’s decent supply continued to price, market insiders said.

Yields held steady even as Treasuries declined on more hints that an interest rate hike is coming in December and on improved private payrolls data.

Over in Treasuries, the 30-year bond yield was flat, but the five-year note yield rose by 5 bps to 1.64% and the two-year yield increased by 4 bps to 0.84%.

Pushing the decline in the Treasuries market, private sector employment reported increased by 182,000 in October, insiders said.

St. Louis IDA prices bonds

Moving to the day’s primary activity, the St. Louis Industrial Development Authority sold $74.11 million of series 2015 senior living facilities revenue bonds for the St. Andrew’s Resources for Seniors Obligated Group.

The bonds were sold through Cain Brothers.

The bonds are due 2019, 2025, 2035 and 2045, according to a pricing sheet. The 2019 bond have a 3.125% coupon and priced at par, the 2025 bonds have a 5% coupon and priced at 107.424 to yield 4.09%, the 2035 bonds have a 5% coupon and priced at 101.178 to yield 4.85%, and the 2045 bonds have a 5.125% coupon and priced at 100.192 to yield 5.10%.

Proceeds will be used to finance capital improvements at St. Andrews’ senior living facilities.

Triborough Bridge deal offered

One of the market’s significant issuers came to market Wednesday. The Triborough Bridge and Tunnel Authority of New York sold $65 million of series 2015B general revenue bonds.

The bonds (/AA-/) were sold through senior manager Loop Capital Markets LLC.

The bonds are due 2016 to 2035 with term bonds due in 2040 and 2045, said a term sheet. The serial coupons range from 1.75% to 5%. Yields range from 0.27% to 3.16%. The 2040 bonds have a 5% coupon and priced at 114.01 to yield 3.34%, and the 2045 bonds have a 5% coupon and priced at 113.373 to yield 3.41%.

Proceeds will be used to finance bridge and tunnel projects.

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