Municipals close a touch cheaper as Treasuries fall again; Wake County, N.C., leads new issues

By Sheri Kasprzak

New York, Aug. 19 – In another session of light trading activity, municipals followed a weaker Treasuries market, insiders said.

“Trading is still pretty light, and we’re taking a lot of cues from Treasuries,” a trader said in the early afternoon.

Municipal yields were higher by 1 basis point to 2 bps.

Treasuries weakened as talks were set to begin between Russia and Ukraine.

The 10-year Treasury note yield rose by 1.5 bps to close the day at 2.402%, the 30-year bond yield climbed by 1.5 bps to 3.212%, and the five-year note yield rose 1 bp to 1.579%.

Wake County brings G.O. bonds

Wake County, N.C., led new issue action on Tuesday with its $345.24 million of series 2014 general obligation public improvement bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively. BofA Merrill Lynch won the bid at a 2.621% true interest cost.

“The county prefers to issue its debt competitive, as we believe this is the best method to ensure the county receives the lowest cost of financing for the taxpayer,” Nicole Kreiser, the county’s debt manager, said in an interview.

The bonds are due 2016 to 2034 with 3% to 5% coupons and 0.32% to 3.24% yields.

Proceeds will be used to finance capital projects, including schools and libraries.

South San Francisco USD prices

In other pricing action, the South San Francisco Unified School District of California hit the market with $67.95 million of series 2014G G.O. bond anticipation notes, said a pricing sheet.

The notes (/SP-1+/) were sold competitively. The issuer did not immediately return calls for the winning bidder Tuesday.

The notes are due July 1, 2018, have a 3.5% coupon and priced at 110.229 to yield 0.78%.

Proceeds will be used to finance capital projects.

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