District of Columbia to bring $500 million in G.O. TRANs; municipals finish relatively unmoved

By Sheri Kasprzak

New York, Oct. 26 - Municipals yields held steady on Monday ahead of a week featuring a few billion-dollar sales.

"It's a quiet Monday," reported on trader reached in the afternoon.

"Not a lot of movement. I don't really think it's going to be as quiet [this week] as last [in secondary]. There's good supply in primary, but I think there's some decent interest in secondary, too."

Amid Monday's trading action, the Dormitory Authority of the State of New York saw some interest in the revenue bonds it recently priced for the Mount Sinai School of Medicine. The 5.25% 2033 bonds were seen at 4.99%.

Elsewhere in New York, Suffolk County's series 2009C public improvement bonds were also moving. The 4% 2026s were trading at 4.002% in the afternoon.

In other trading activity, the North Carolina Medical Commission's series 2009A revenue bonds sold for Duke University Health System were trading. The 5% 2042 bonds were seen at 5.067%.

California to sell $3 billion

The deal of the week is scheduled to come to market on Thursday. The State of California is expected to price $3 billion in series 2009 economic recovery refunding bonds (//A) through Barclays Capital Inc.

Proceeds will refund existing economic recovery bonds.

"Just looking at recent deals, I'm going to wager that retail demand will be off," said one sellside source when asked about his predictions for the sale.

"Institutional will probably pick up the bulk, but even institutional might balk. I think it will likely be downsized. Maybe not by a lot. That's just my view. There's still a lot of wariness around California bonds. We'll see how it goes."

Another billion-dollar sale comes from the Bay Area Toll Authority in California. The authority plans to price $1.3 billion in series 2009 Build America Bonds through Citigroup Global Markets Inc.

The 40-year bonds will fund transportation improvements.

D.C. plans G.O. TRANs sale

Coming up on Tuesday, the District of Columbia is expected to sell $500 million in series 2010 general obligation tax revenue anticipation notes, said a preliminary official statement.

The 2.5% notes (MIG 1//F1+) will be sold on a competitive basis with Phoenix Capital Partners LLC and Public Resources Advisory Group as the financial advisers.

The notes are due Sept. 30, 2010.

Proceeds will be used to fund capital expenditures ahead of the collection of certain taxes.

Louisiana to price

In other sales for Tuesday, the State of Louisiana is scheduled to price $324.78 million in series 2009 G.O. bonds and G.O. refunding bonds (A1/AA-/AA) on a competitive basis with Government Finance Associates Inc. as the financial adviser.

The sale includes $200 million in series 2009A G.O. bonds and $124.78 million in series 2009 G.O. refunding bonds.

Proceeds will be used to refund the state's series 1998A bonds and fund capital projects.

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