Muni yields firm as bulk of week's issues price; New Mexico brings $137.22 million G.O. bonds

By Sheri Kasprzak

New York, March 19 - Municipal yields were firmer again on Tuesday as most of the week's offerings came to market, traders reported.

Yields closed out the day lower by 2 basis points to 3 bps, but munis couldn't keep pace with rallying Treasuries, said traders.

"We are riding on Treasuries' coattails somewhat, but a number of deals are pricing today, and that is pushing the market for the most part," one trader said.

New Mexico sells G.O. bonds

The State of New Mexico sold $137.22 million of series 2013 capital projects general obligation bonds, said a pricing sheet.

The bonds (Aaa/AA+/) were sold competitively. William Blair & Co. won the bid with a 1.775% true interest cost, said Stephanie Schardin Clarke, the director of the state's Board of Finance.

The bonds are due 2014 to 2023 with 2% to 2.4% coupons.

"Law does not require us to sell our general obligation bonds at competitive sale, but for many reasons, we always do so, as far back as I am aware," Clarke said Tuesday.

Clarke said the state last came to market with G.O. bonds in April 2011 with a much smaller issuance of $18,645,000.

"In that 2011 sale, the TIC was 2.43%," she said.

"In our last larger sale, in April 2009, the par amount was $196.33 million with a TIC of 2.32%."

Proceeds will be used to construct, acquire or improve senior citizen centers and facilities, to make library acquisitions and to make higher education and special schools improvements and acquisitions.

NYC Transitional deal set

Looking to Wednesday's offerings, the New York City Transitional Finance Authority is scheduled to bring $1 billion of series 2013 future tax secured subordinated bonds in four tranches.

The offering includes $650 million of series 2013F-1 tax-exempt bonds, which are due 2015 to 2039; $100 million of series 2013F-2 taxable qualified school construction bonds, which are due Feb. 1, 2038; $229 million of series 2013G tax-exempt bonds, which are due 2013 to 2031; and $21 million of series 2013H taxable bonds, which are due 2013 to 2022.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays and Morgan Stanley & Co. LLC are the senior managers.

Proceeds will be used to finance general city capital expenditures, including the rehabilitation or repair of public schools and land acquisition.

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