Munis softer in sympathy with Treasuries; only $4 billion of new issues expected in week ahead

By Sheri Kasprzak

New York, May 10 - Municipal yields were off slightly on Friday, with yields seen up by 3 basis points to 4 bps, market insiders said.

"There's still quite a bit of selling pressure in secondary," one trader said.

Treasuries were weaker on Friday, and municipals followed suit.

The week ahead, meanwhile, is shaping up with moderate new-issue action. So far, only $4 billion of new deals are on the calendar, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

U of Chicago bonds price

During the week, the University of Chicago came to market with $205 million of series 2013B taxable bonds, upsized from $200 million, said an official statement.

The bonds (Aa1/AA/AA+) were sold through senior managers Wells Fargo Securities LLC and BofA Merrill Lynch.

The bonds are due Oct. 1, 2045, have a 4.151% coupon and priced at par.

Proceeds will be used to finance general university capital needs.

L.A. transportation deal set

Moving to the offerings of the coming week, the Los Angeles County Metropolitan Transportation Authority is scheduled to price $147,565,000 of series 2013A Proposition C revenue refunding bonds (Aa3/AA+/) on Tuesday.

The bonds will be sold competitively and are due 2014 to 2023.

Proceeds from the deal will be used to refund existing debt.

Los Angeles water bonds ahead

Also out of L.A., the City of Los Angeles plans to price $350 million of series 2013A wastewater revenue refunding bonds (Aa3/AA/AA) through BofA Merrill Lynch and Jefferies & Co.

The city intends to use the proceeds to current refund its series 2003 subordinated bonds and to advance refund its series 2005A senior lien bonds.

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