Municipals rise again on stronger Treasuries; week’s pricings wind down; Dasny yields lowered

By Sheri Kasprzak

New York, July 23 – Municipals rose again on Thursday in sympathy with stronger Treasuries, market insiders said.

Yields on top-rated municipals fell by as much as 4 basis points with the 10-year yield falling 3 bps to 2.26% and the 30-year yield falling by 4 bps to 3.21%.

Treasuries, meanwhile, were also stronger with the 30-year bond yield falling by 6 bps to 2.98%. The 10-year benchmark note yield fell by 5 bps to 2.28%.

Elsewhere in municipals, municipals experienced a modest $35 million of outflows for the week ended July 15, the third straight week of outflows, according to the Investment Company Institute.

Dasny yields cut 3 to 5 bps

Meanwhile, market insiders were still talking about the deal of the week, the Dormitory Authority of the State of New York’s $1,522,050,000 offering of series 2015A state sales tax revenue bonds.

Yields on the bonds were downwardly adjusted by 3 bps to 5 bps with the 10-year maturity bifurcated with 2.375% and 5% coupons and a 2.36% yield over Tuesday’s 2.41% yield.

The bonds (/AAA/AA+) priced Wednesday through Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC and were upsized from $1,167,875,000.

Proceeds will be used to refund certain outstanding state-supported debt.

Cincinnati water deal set

Looking ahead, Cincinnati will sell $208.77 million of water system revenue bonds (Aaa/AAA/), the latest in a slew of water offerings.

The deal includes $47,035,000 of series 2015A revenue bonds due 2022 to 2045, $73,345,000 of series 2015B refunding bonds due 2022 to 2032 and $88.39 million of series 2015C taxable refunding bonds due 2016 to 2022.

The bonds will be sold through Morgan Stanley.

Proceeds will be used to finance capital improvements to the city’s water system, including the construction of new mains, as well as to refund the city’s series 2005B water system revenue bonds.

© 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.