Municipals close firmer along with Treasuries; New York City Transitional to sell $760 million

By Sheri Kasprzak

New York, April 7 - The municipals market firmed for a second consecutive session, following along with Treasuries, which got a boost from a stock sell-off as investors sought safe-haven investments, market insiders said.

Muni yields were lower by 2 basis points to 3 bps across the curve, pretty much in line with Treasuries.

The five-year Treasury note yield fell by 3 bps to end the session at 1.676%, the 10-year note yield fell by 2.5 bps to 2.70%, and the 30-year bond yield fell by 2.5 bps to 3.56%.

A trader said Monday that this week will offer up more supply than recent weeks, which will satisfy recent demand.

NYC Transitional deal set

The largest deal of the week comes from the New York City Transitional Finance Authority, which is set to price $760 million of series 2014D future tax secured subordinated bonds through BofA Merrill Lynch and competitive sale.

The deal includes $650 million of series 2014D-1 tax-exempt bonds, which will price on a negotiated basis, and $110 million of series 2014D-2 taxable bonds, which will price competitively.

The 2014D-1 bonds are due 2016 to 2041, and the 2014D-2 bonds are due 2018 to 2026.

Proceeds will be used to finance general city capital expenditures.

Energy Northwest plans bonds

Also on Tuesday, Energy Northwest of Washington state is ready to price $646.5 million of series 2014 electric revenue and refunding bonds in three tranches.

The deal includes $529.8 million of series 2014A Columbia Generating Station electric revenue and refunding bonds, $26,015,000 of series 2014A project 3 electric revenue refunding bonds and $90,685,000 of series 2014B Columbia Generating Station taxable revenue and refunding bonds.

The bonds (Aa1/AA-/AA) will be sold through underwriters J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and BofA Merrill Lynch.

Proceeds from the offering will be used to finance capital improvements to the Columbia Generating Station and to refund the corporation's series 2004A, 2004C, 2007A, 2008A, 2009A-B and 2011A revenue bonds.

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