Municipals flat to weaker as market awaits $8.2 billion supply; transportation deals dominate

By Sheri Kasprzak

New York, May 2 – Municipals rounded out Monday unchanged to slightly weaker ahead of a healthy new-issue calendar, market insiders said.

Munis followed mostly weaker Treasuries, which took a hit on stronger manufacturing numbers.

The 10-year triple-A muni bond yield ended the day 2 basis points higher at 1.73%, and the 30-year bond yield held steady at 2.73%, traders said.

Meanwhile, the 30-year and 10-year Treasury yields both rose 5 bps on the session as the cost of raw materials in manufacturing reportedly rose in April.

Looking to the week in municipals, about $8.2 billion of new offerings await investors, with deals from the transportation sector factoring heavily in the supply.

North Texas bonds ahead

Headlining the week’s calendar, the North Texas Tollway Authority will price $947.02 million of revenue refunding bonds (A1/A/) through J.P. Morgan Securities LLC.

The bonds are due 2017 to 2036 with a term bond due in 2039.

Proceeds will refund a portion of the authority’s series 2008A-B, 2008K and 2009A revenue bonds.

New York thruway deal set

Also coming up this week, the New York State Thruway Authority is scheduled to price $850 million of series 2016A general revenue junior obligations (A3/A-/) on Wednesday.

Citigroup Global Markets Inc. and Siebert Brandford Shank & Co. LLC are the senior managers.

The bonds are due 2033 to 2041 with term bonds due in 2046, 2051 and 2056.

Proceeds will be used to finance the construction of the new New York bridge project.

Virginia bonds planned

In other transportation deals, the Commonwealth Transportation Board of Virginia is on the calendar Wednesday with $275,985,000 of series 2016 capital projects revenue bonds.

The bonds will be sold competitively and are due 2017 to 2041.

Proceeds will finance transportation projects.

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