Muni yields mostly unchanged despite Treasury rally; Dorchester School brings $96.21 million

By Sheri Kasprzak

New York, May 16 - Municipals were largely unchanged on Thursday even though Treasuries improved substantially, traders reported.

Spots of firmness were seen, but yields were mostly flat, said one trader.

"Treasuries are rallying, and it does seem to be having some impact on us, but we're still underperforming [Treasuries]," the trader said.

Some market sources reported that Treasuries' improvement did shake municipals out of a recent rut.

"There's not a lot of change, but trading [activity] is heavier than it has been the past several sessions," a trader said in the afternoon.

Primary action, on the other hand, was more subdued. The bulk of the week's new issues priced earlier in the week.

Dorchester school bonds price

Looking to the day's primary action, Dorchester County School District No. 2 of South Carolina came to market with $96,205,000 of series 2013 Growth installment purchase revenue refunding bonds, said a pricing sheet.

The bonds (Aa3/AA-/) were sold through Citigroup Global Markets Inc. and Piper Jaffray & Co.

The deal included $10.88 million of series 2013A taxable bonds and $85,325,000 of series 2013B tax-exempt bonds.

The 2013A bonds are due 2013 to 2017 with 0.55% to 1.528% coupons all priced at par.

The 2013B bonds are due 2018 to 2028 with 3% to 5% coupons and yields from 1.28% to 3.35%.

Proceeds will be used to refund debt.

Mesa prices G.O. bonds

Elsewhere during the session, the City of Mesa, Ariz., sold $59.69 million of series 2013 general obligation bonds, said a pricing sheet.

The bonds (Aa2/AA/) were sold competitively. The issuer did not immediately return calls for the winning bidder.

The bonds are due 2014 to 2033 with coupons from 1.5% to 4% and yields from 0.45% to 3.60%.

Proceeds will be used to make improvements to public safety facilities, park and recreation facilities and streets in the city.

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