Municipals weaken as Brexit fears wane, Treasuries slip; New York Housing sells $302.7 million

By Sheri Kasprzak

New York, June 21 – Municipals ended the session weaker, following in line with Treasuries, as fears over Great Britain’s possible exit from the European Union waned, market sources said.

The 10-year triple-A yield rose by 3 basis points to 1.58% and the 30-year bond yield edged up 2 bps to 2.38%.

On Monday, the 30-year Treasury yield rose 8 bps while the 30-year muni yield edged 1 bp higher, leaving the municipal-to-Treasury ratio at 94.6%, the lowest reading of the municipal relative value measure in more than three years, a market insider said.

New York housing bonds price

Heading up the session’s new-issue action, the New York State Housing Finance Agency priced $302.69 million of series 2016C affordable housing revenue bonds.

The bonds were sold through senior managers Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Siebert Brandford Shank & Co. LLC.

The bonds are due 2016 to 2027 with term bonds due in 2031, 2036, 2041, 2046 and 2049. The serial coupons range from 0.60% to 2.40%. The coupon is 2.75% for the 2031 bonds, 3.05% for the 2036 bonds, 3.25% for the 2041 bonds, 3.35% for the 2046 bonds and 3.375% for the 2049 bonds. All of the bonds priced at par.

Proceeds will be used to finance mortgage loans for multifamily housing projects.

Wayne County brings notes

Elsewhere, Wayne County, Mich., sold $173.2 million of series 2016 general obligation taxable tax revenue notes.

The notes (/SP-1) were sold through BofA Merrill Lynch.

The notes are due Dec. 1, 2018, have a 4.25% coupon and priced at par.

Proceeds will be used to fund in whole or part a delinquent revolving tax fund.

During the session, Fitch Ratings lifted the county’s issuer default rating to BB+.

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