Municipals mixed; $8.5 billion of supply forecast for week; transportation bonds grab focus

By Cristal Cody

Tupelo, Miss., Oct. 5 – Municipal bonds were mixed in trading on Monday with the short end about 2 basis points stronger and the long end 1 bp to 3 bps wider, while Treasuries slipped on weaker economic data.

The benchmark 10-year Treasury yield rose 7 bps to 2.04%, while the 30-year bond yield climbed 8 bps to close at 2.88%.

About $8.5 billion of municipal issuance is expected for the week with a $2 billion bond offering from the Port Authority of New York and New Jersey and a $1.9 billion deal from Chicago O’Hare International Airport “taking center stage,” RBC Capital Markets, LLC analysts said in a note on Monday.

Looking to Tuesday’s action, several issuers are expected to price notes through competitive sales.

Washington state intends to sell $161.61 million of certificates of participation in a competitive offering.

The series 2015C COPs (Aa2//) are due 2016 through 2038.

Public Financial Management, Inc. is the financial adviser.

San Francisco School to price

Also coming up on Tuesday, the San Francisco Unified School District in California as previously reported is offering $297.95 million of general obligation bonds and G.O. refunding bonds (Aa2/AA-/) competitively in two sales on Tuesday and Thursday.

The deal includes $226 million of series F 2015 proposition A election of 2006 bonds that will price and series C 2015 proposition A election 2011 bonds that will be offered for bids on Tuesday.

The sale also includes $71.95 million of series 2015 G.O. refunding bonds that will be sold competitively on Thursday.

Public Financial Management is the municipal adviser.

San Francisco offers COPs

In Wednesday’s session, the City and County of San Francisco will sell $127.98 million of refunding COPs, according to a preliminary official statement.

The series 2015-R1 COPs (Aa3/AA/AA-) will price competitively.

The co-financial advisers are Public Financial Management and Ross Financial.

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