Municipals close flat to slightly weaker as Treasuries fall; Valparaiso leads lighter calendar

By Sheri Kasprzak

New York, Aug. 28 – Municipals rounded out Friday flat to a touch weaker, market insiders said.

Top-rated municipals were seen flat to about 1 basis point higher in spots as Treasuries closed mostly softer on continued concerns over a September rate hike.

Over in Treasuries, the 30-year bond yield fell by 1 bp to 2.92% while the five-year note yield rose by 3 bps to 1.52% and the two-year yield rose by 4 bps to 0.72%. The 10-year yield rose by 1 bp to 2.19%.

Valparaiso deal ahead

Heading up the lighter calendar, the City of Valparaiso, Ind., is on tap to bring $143,035,000 of series 2015 multi-school board corporation unlimited tax first mortgage bonds (//AA+).

The bonds are the largest on the calendar so far for the week of Aug. 31, even though Puerto Rico Aqueduct and Sewer Authority’s $750 million revenue bonds are still day-to-day.

City Securities Corp. will price the bonds, which are due 2018 to 2035.

Proceeds will finance school capital projects.

Lower Colorado River preps sale

On Wednesday, the Lower Colorado River Authority of Texas is slated to sell $134,455,000 of series 2015D refunding revenue bonds (/A/A) through Barclays.

The bonds are due 2016 to 2032, and proceeds from the sale will be used to refund existing revenue bonds.

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