Municipals flat in quiet session; details emerge in New York Liberty's $2.58 billion sale

By Sheri Kasprzak

New York, Dec. 24 - Municipal bond trading activity ended a short session on Christmas Eve with little to push yields, a market source reported Thursday.

A trader said early Thursday afternoon that everyone was waiting for the market to close so their holiday could begin.

"It is extremely quiet," she said.

"Everyone here is ready to get out. We're in holiday mode. There really isn't enough activity to push yields in any direction, so we'll call it flat. There might be a few bites here and there, but it has been very, very quiet."

Amid the light activity, the New York Municipal Bond Bank Agency saw its recently priced taxable series 2009B-3 recovery bonds moving. The 6.879% 2034 bonds were seen at a 6.364% yield.

In other trading action, the Battery Park City Authority of New York's recently priced series 2009A revenue bonds were active in trade. The 6.375% 2039s were trading at 5.936%.

On a smaller scale, a trader said small bits of the University of Arkansas' recently priced revenue bonds were moving. The 4.25% 2029s were trading near par.

Meanwhile, the details of the New York Liberty Development Corp.'s $2,579,955,000 sale of series 2009 multi-modal revenue bonds were revealed Thursday.

The bonds (Aaa/VMIG1/A-1+/AAA/F1+) were sold through Goldman Sachs & Co.

The bonds are due 2049 and have a 0.5% coupon, priced at par.

Proceeds will be used to fund the construction of three office buildings at the World Trade Center site in downtown Manhattan.

Frederick County sale planned

In upcoming sales, Frederick County in Maryland is set to price $188.73 million in series 2010 consolidated public improvement bonds on Jan. 5, according to a preliminary official statement.

The bonds (Aa2) will be sold on a competitive basis with Davenport & Co. LLC as the financial adviser.

The offering includes $59.705 million in series 2010A tax-exempt bonds, $90.115 million in series 2010B Build America Bonds and $38.91 million in series 2010C refunding bonds.

The 2010A bonds are due 2011 to 2020, and the 2010B bonds are due 2021 to 2030. The 2010C bonds are due 2016 to 2020.

Proceeds will be used to fund capital improvements.

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