Yields firmer on short end, softer long; New York Liberty Development prices $672.48 million

By Sheri Kasprzak

New York, Dec. 1 - Municipals closed out another busy day on a mixed note, with long bonds seeing some weakness and short bonds improving somewhat, market insiders reported.

"I'd call it mixed," said one trader reached during the afternoon.

"There's not a huge change out there. Short bonds are faring better; long bonds are a touch off. We are seeing some supply pressure creeping in, but it's not enough to swing us dramatically either way."

Twenty-year and 30-year yields were both up about 2 basis points. Five-year yields were down more than 4 bps, and seven-year yields were seen down more than 3 bps.

Leading Thursday's primary action, the New York Liberty Development Corp. offered up $672.48 million of series 2011 One World Trade Center liberty revenue bonds, said a term sheet.

The bonds were sold through J.P. Morgan Securities LLC and Citigroup Global Markets Inc.

The bonds are due on Dec. 15, 2041 and Dec. 15, 2043. The 2041 bonds have a 5% coupon and priced at 102.776, and the 2043 bonds have a 5.25% coupon and priced at 105.581.

Proceeds will be used to purchase consolidated bonds issued by the Port Authority of New York and New Jersey for the construction and design of One World Trade Center, a 104-story building in lower Manhattan.

New York's MTA brings bonds

Also during the session, the Metropolitan Transportation Authority of New York sold $500 million of series 2011D transportation revenue bonds, said a pricing sheet.

The bonds (A2//A) were sold through Ramirez & Co. Inc. and Loop Capital Markets LLC.

The bonds are due 2012 to 2031 with term bonds due in 2036, 2041 and 2046. The serial coupons range from 2.5% to 5%. The 2012 bonds were not reoffered. The 2036 bonds have a split maturity with a 4.75% coupon priced at 99.274 and a 5% coupon priced at 101.563. The 2041 bonds have a 5.25% coupon and priced at 103.121. The 2046 bonds have a 4.875% coupon and priced at 99.

Proceeds will be used to fund transit and commuter projects.

Connecticut sells debt

In other news, the State of Connecticut sold $452.515 million of series 2011 transportation infrastructure purposes special tax obligation bonds on Thursday, said a pricing sheet.

The sale included $221.23 million of series 2011A bonds and $231.285 million of series 2011B bonds.

The 2011A bonds are due 2013 to 2031 with 3.375% to 5% coupons. The 2011B bonds are due 2012 to 2022 with 2% to 5% coupons.

The bonds (Aa3/AA/AA) were sold through senior manager Goldman Sachs & Co.

Proceeds will be used to fund transportation infrastructure projects throughout the state and to refund existing debt.

Cedars-Sinai bonds price

Elsewhere, the California Health Facilities Financing Authority priced $147.85 million of series 2011 revenue refunding bonds for the Cedars-Sinai Medical Center, said a pricing sheet.

The bonds (A2/A+/) were sold through Bank of America Merrill Lynch.

The bonds are due 2012 to 2021 with coupons from 1.5% to 5%.

Proceeds will be used to refund the medical center's series 1997A-B revenue bonds, the proceeds of which were used to construct, acquire, equip, renovate and rehabilitate existing facilities operated by the medical center.

New Jersey poised to price

Looking to the coming week, the largest offering is set to come out of the Garden State. The State of New Jersey is expected to bring $2.15 billion of series 2012 tax and revenue anticipation notes on Tuesday.

The 2% notes are due June 21, 2012, and proceeds from the deal will be used to provide cash flow management for revenues and expenditures of the general fund and the property tax relief fund during the 2012 fiscal year.

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