Municipal bonds rally; California University, California Infrastructure deals in lineup

By Cristal Cody

Eureka Springs, Ark., March 31 – Municipal bonds recovered on Thursday, tightening across the bond curve.

“Munis had a very good day today,” a trader said. “They bumped the scale on the shorter end anywhere from 2 basis points and 5 bps. There was a lot of trading going on.”

Market analysts expect a strong jobs report on Friday. The Labor Department will release the March non-farm payroll report with forecasts of a 205,000 jobs gain in March.

Treasuries closed the day stronger. The 10-year note yield dropped 6 bps to 1.75%, and the 30-year bond yield fell 5 bps to 2.59%.

The Regents of the University of California is in the deal pipeline with an $842 million four-part offering of general revenue bonds.

The California Infrastructure and Economic Development Bank is marketing $414.21 million of clean water state revolving fund revenue bonds.

Also on the calendar, the Eagle Mountain-Saginaw Independent School District in Tarrant County, Texas, plans to price $156.91 million of unlimited tax refunding bonds.

University of California

The Regents of the University of California intend to sell $842 million of general revenue bonds (Aa2/AA/AA) in four tranches, according to a preliminary official statement.

The deal includes $438 million of series 2016AR bonds, $184 million of series 2016AS taxable bonds, $132 million of series 2016AT bonds and $88 million of series 2016 AU taxable fixed-rate notes.

Wells Fargo Securities LLC and Barclays are the lead managers of the negotiated sale.

Proceeds will be used to finance capital projects at the university and refund certain outstanding general revenue bonds.

California Infrastructure

The California Infrastructure and Economic Development Bank intends to price $414.21 million of clean water state revolving fund revenue bonds, according to a preliminary official statement.

The series 2016 green bonds (Aaa/AAA/AAA) have serial maturities from 2017 through 2035.

Morgan Stanley & Co. LLC, Piper Jaffray & Co. and Stifel, Nicolaus & Co., Inc. are the lead managers of the negotiated offering.

The proceeds will be used fund water projects across the state.

Eagle Mountain-Saginaw

The Eagle Mountain-Saginaw Independent School District is in the deal pipeline with $156.91 million of unlimited tax refunding bonds, according to a preliminary official statement.

The series 2016 bonds have serial maturities from 2018 through 2037.

Hilltop Securities Inc. is the bookrunner for the negotiated sale.

Proceeds from the deal will be used to refund a portion of the district’s outstanding bonds.

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