Municipal yields stay flat as primary calendar stacks up; numerous competitive sales ahead

By Sheri Kasprzak

New York, March 5 - The primary calendar for municipals in the coming week features several large competitive deals from issuers including the Florida Board of Education and the State of Illinois.

"You know, it's the eternal question, whether to go competitive or negotiated," noted one sellsider when asked about the rush of competitive sales.

"It really depends upon the issuer and market conditions, and just whether the issuer thinks they'll get a better rate with one or the other. Both have their advantages and disadvantages."

Meanwhile, municipals ended the week mostly flat in light trading action.

The University of Texas System's series 2010A revenue bonds were seen in action on Friday. The 3% 2020 bonds were trading at 2.875% in the afternoon.

Also on Friday, the Dormitory Authority of the State of New York's state personal income tax bonds were moving. The 4% 2014s were trading at 1.38%.

MEAG prices more

Elsewhere, the Municipal Electric Authority of Georgia priced another tranche of its planned $2.533 billion sale of Plant Vogtle bonds. The authority priced Friday $1.012 billion in series 2010A taxable project M Build America Bonds, said a pricing sheet.

The bonds (A2/A+/A+) were sold through Goldman, Sachs & Co.

The offering is part of a $2.533 billion sale of project bonds. The authority priced $1.141 billion of series 2010A-B project J bonds Wednesday.

The 2010A project M bonds are due 2057 and have a 6.655% coupon, priced at par.

Proceeds will be used to construct new Plant Vogtle electric generation facilities.

Florida BOE bonds ahead

Looking to the coming week's competitive sales, the Florida Board of Education plans to bring $423.255 million in series 2010 public education capital outlay bonds (//AA+) on Tuesday, said a sales calendar.

The sale includes $253.255 million in series 2010A tax-exempt bonds and $170 million in series 2010B taxable bonds.

The 2010A bonds are due 2011 to 2022, and the 2010B bonds are due 2018 to 2033.

Proceeds will be used to fund school construction and other educational facilities requirements throughout the state.

Illinois to price $412 million

Also coming up, Illinois is expected to sell $412 million in series 2010 taxable general obligation bonds on Thursday, said a sales calendar.

The bonds will be sold on a competitive basis.

The offering includes $356 million in series 2010A taxable bonds and $56 million in series 2010B taxable bonds.

Both series of bonds are due 2011 to 2035.

Proceeds will be used to fund capital expenditures.

Seattle competitive deal ahead

In other upcoming offerings for the coming week, the City of Seattle is set to sell $201.425 million in series 2010 revenue bonds on Thursday, said a sales calendar.

The bonds will be sold on a competitive basis.

The offering includes $58.235 million in series 2010A taxable bonds, which are due 2020 to 2030, and $143.19 million in series 2010B tax-exempt bonds, which are due 2010 to 2031.

Proceeds will be used to fund capital expenditures and to refund existing bonds.

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