Municipals end mostly flat, slightly firmer; Inland Valley delays; Delaware sells $225 million

By Sheri Kasprzak

New York, Feb. 27 - Municipals found little to move them on Thursday as one of the larger offerings of the week was put on the back burner, market sources said. Improved Treasuries helped maturities out long, said one trader, but low supply kept yields in a holding pattern.

As supply continued to falter, the delay of the Inland Valley Development Successor Agency of California's $270 million sale of tax allocation refunding bonds (/A-/) left little for buyers to sink their teeth into.

The Barclays-led deal was expected to price Thursday. The pricing date has not been rescheduled yet.

Proceeds from the deal will be used to repay outstanding loans and refund the agency's outstanding series 2011B-C bonds.

In the Treasuries market, Federal Reserve chairwoman Janet Yellen's testimony to the Senate Banking Committee sent yields down. The 30-year bond yield fell by 3.5 basis points to close the day at 3.598%, and the 10-year note yield fell by 3 bps to 2.646%. The five-year note yield fell by 2 bps to 1.489%.

Delaware brings G.O. bonds

Moving to the light primary action for the day, the State of Delaware hit the market with $225 million of series 2014 general obligation bonds.

The bonds are due 2015 to 2034 with 3% to 5% coupons with 0.14% to 3.606% yields, according to a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively, but the issuer did not immediately return calls for the winning bidder.

Proceeds will be used to finance various capital facilities within the state.

Maryland deal ahead

Next week will offer up some relief to the supply drought. The State of Maryland will bring $741.03 million of series 2014 state and local facilities loan G.O. bonds (Aaa/AAA/AAA).

The deal includes $450 million of first series 2014A tax-exempt bonds, $50 million of first series 2014B taxable bonds and $241.03 million of first series 2014C tax-exempt refunding bonds.

The bonds will be sold competitively.

Proceeds will be used to finance a variety of state capital projects, including school and highway projects, as well as loans to state and local governmental facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.