Yields climb 2 bps; Temple University brings to market $120 million 1.5% funding obligations

By Sheri Kasprzak

New York, March 30 - Municipal yields suffered some weakness on Tuesday following a lackluster performance by Treasuries, market insiders reported.

"We're off, probably 2, maybe 3 basis points across the curve," said one trader reached during the afternoon.

During Tuesday's secondary action, the State of California's various-purpose general obligation bonds were moving. The 5.75% 2017 bonds were trading at 5.056%.

In primary action, Temple University of Pennsylvania priced $120 million in series 2010 university funding obligations through the Commonwealth System of Higher Education, said a pricing sheet.

The obligations (MIG 1) were sold competitively with PNC Capital Markets Inc. winning the bid with a 0.4% net interest cost. Public Financial Management Inc. was the financial adviser.

The 1.5% obligations are due April 6, 2011.

Proceeds will be used to refinance a portion of the university's series 2009 funding obligations.

The university is based in Philadelphia.

Hallsville ISD bonds price

Also priced Tuesday was an $86 million issue of series 2010 school building bonds from the Hallsville Independent School District of Texas.

The sale included $14.275 million in series 2010A tax-exempt bonds and $71.725 million in series 2010B Build America Bonds, according to a pricing sheet.

The 2010A bonds are due 2011 to 2016 with 2.5% to 4% coupons. The 2010B bonds are due 2017 to 2030 with 4.272% to 5.966% coupons, all priced at par.

Southwest Securities Inc. was the senior manager.

Proceeds will be used to construct new school buildings renovate existing schools.

The district is based in Hallsville, Texas.

North Carolina sale ahead

Looking to Wednesday's primary action, the State of North Carolina is gearing up to bring $487.7 million in series 2010A G.O. public improvement bonds (Aaa/AAA/AAA).

The bonds will be sold competitively and are due 2011 to 2030.

Proceeds will be used to finance capital projects throughout the state.

Also coming up on Wednesday, the Michigan Municipal Bond Authority is set to price $255 million in series 2010B state aid revenue notes (/SP-1/) through J.P. Morgan Securities Inc. and Loop Capital Markets LLC.

The notes are due March 21, 2011, and proceeds will be used to purchase a note, which will be issued to the School District of the City of Detroit.

Tallahassee deal planned

Out on the horizon, the City of Tallahassee, Fla., is expected to price $115.64 million in series 2010 energy system revenue refunding bonds, said a preliminary official statement.

The bonds (Aa3/AA/AA-) will be sold on a negotiated basis with Bank of America Merrill Lynch as the senior manager.

The bonds are due 2016 to 2028.

Proceeds will be used to refund all or a portion of the city's outstanding energy system revenue bonds as well as refund its series 1998A and 1998B bonds.

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