Municipals end stronger as Treasuries rally; only $2 billion of new issues expected for week

By Sheri Kasprzak

New York, Dec. 11 – Municipals rallied to close the week as Treasury prices jumped on slipping oil prices, traders reported.

Yields on top-rated municipals fell by as much as 5 basis points. Meanwhile, the 10-year benchmark Treasury note yield fell by 11 bps, as did the 30-year bond yield.

At $10.8 billion, trading volume in municipals remained strong Thursday despite a recent dip in action. The 30-day average trading volume stands at $7.4 billion.

Looking to the week ahead, new-issue supply will dry up substantially, with just $2 billion of new offerings anticipated.

Meanwhile, municipal mutual fund inflows jumped to $742 million for the week ended Dec. 9, according to Lipper.

Jacksonville readies deal

One of the largest new issues on the week’s light calendar is from Jacksonville, Fla. The city is on tap to sell $200,265,000 of transportation revenue refunding bonds (A1/AA-/AA-).

The bonds will be offered competitively and are due 2016 to 2037.

Proceeds will be used to refund the city’s series 2008B and 2012A-B transportation revenue bonds.

New York Transportation set

Also coming up during the week, New York Transportation Development Corp. is expected to price $169,735,000 of special facility revenue refunding bonds.

Citigroup Global Markets Inc. and Ramirez & Co. Inc. are the senior managers for the deal.

The bonds are due 2017 to 2023, and proceeds will be used to refund existing debt issued for a loan to Terminal One Group.

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