Muni yields fall by as much as 4 bps as Treasuries rally; Pennsylvania sale to lead offerings

By Sheri Kasprzak

New York, Jan. 30 – Municipals ended the week on a stronger note, market insiders said, following a Treasury rally.

Yields were seen lower by as much as 4 basis points, said one trader reached in the afternoon. Meanwhile, the five-year Treasury note fell by 10 bps and the 10-year note yield fell by 9 bps.

Munis made a comeback after tumbling Thursday along with Treasuries. Even so, the 10-year MMD triple-A index ended at 1.75% and the 30-year yield at 2.54% on Thursday.

Mutual funds reportedly saw $892 million of inflows during the week ended Jan. 28.

Meanwhile, new issue volume is expected to ramp back up in the week ahead with issuance expected to total about $9 billion.

Pennsylvania deal rescheduled

The new-issue action will be led by a $1 billion offering from Pennsylvania. The deal was postponed this past week after a snowstorm in the Northeast delayed a few deals. The deal is set to price on Tuesday.

The bonds will be sold competitively and are due 2016 to 2035.

Proceeds will finance capital projects.

Virginia Public School deal set

Also coming up on Tuesday, the Virginia Public School Authority is expected to price $458,675,000 of series 2015A school financing refunding bonds competitively.

The bonds (Aa1//AA+) are due 2015 to 2037.

Proceeds will refund the authority’s series 2006A-B, 2008A-B and 2009B school financing bonds.

Trinity Health plans deals

Looking ahead, the Trinity Health Credit Group will be in the market with two offerings: a $961.43 million composite issue of revenue bonds through the Michigan Finance Authority, the Idaho Health Facilities Authority and Montgomery County, Md., and $350 million of series 2015 taxable bonds.

Both offerings will be conducted through BofA Merrill Lynch and Goldman Sachs & Co.

Proceeds from the composite issue will finance capital improvements to Trinity Health facilities and refund existing bonds. The taxable bonds will be used for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.