Munis firm; focus shifts to secondary; Washington to sell $703.27 million G.O. refunding bonds

By Cristal Cody

Tupelo, Miss., Aug. 2 - Municipals ended slightly firmer on light primary activity on Thursday as traders focused more on the secondary market, bond sources said.

"It seems stronger, but it's kind of spotty stronger," a trader said. "Overall, it was a quiet day. People are off the desk, and there's clearly not a lot going on."

Still, bonds were firmer through the curve, trading about 2 basis points to 3 bps tighter in 10-year notes and out, the trader said.

Light activity is expected in the muni market on Friday, a bond source said.

"There's nothing coming tomorrow that's going to do anything supply-wise," the source said. "I would expect it to be real quiet on no real news."

Looking ahead to the upcoming week, the State of Washington plans to price $703.27 million of general obligation refunding bonds on Tuesday.

In other upcoming offerings, Indiana Finance Authority announced it intends to sell $188,275,000 of first-lien wastewater utility revenue bonds for CWA Authority Inc.

Washington to sell G.O. bonds

Washington is set to price $703.27 million of G.O. refunding bonds (Aa1/AA+/AA+) through a competitive sale on Tuesday, according to a preliminary official statement.

The offering includes $338,725,000 of series R-2013A various purpose G.O. refunding bonds and $364,545,000 of series R-2013B motor vehicle fuel tax G.O. refunding bonds.

The tranches have a maturity in January 2013 and serial maturities from 2016 through 2030.

Montague DeRose and Associates, LLC and Seattle-Northwest Securities Corp. are the financial advisers.

Proceeds will be used to refund outstanding G.O. bonds.

Indiana Finance plans deal

In an offering on the horizon, Indiana Finance Authority plans to price $188,275,000 of first-lien wastewater utility revenue bonds for CWA Authority, according to a preliminary official statement.

The series 2012A bonds (A1/AA/) will price through a negotiated sale.

Morgan Stanley & Co. LLC is the lead manager. The co-managers are City Securities Corp., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used to fund improvements to the wastewater system and repay draws made on the Wells line.

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