Munis close mixed following another active primary session; Connecticut brings $700.82 million

By Sheri Kasprzak

New York, Nov. 2 - Investor apathy resulted in municipals closing out the day mixed, market insiders reported. Market volatility kept some investors out of the market, said one trader.

Twenty-year yields experienced the most weakness, with yields up more than 3 basis points. Five-year yields were up more than 2 bps. Fifteen-year yields were down 3 bps, and both seven- and 10-year yields were down more than 1 bps.

"There's supply, but no one's buying," said the trader, who was reached Wednesday afternoon.

He noted that some uncertainty over Europe's planned bailout of Greece might be giving investors some pause.

"I think some [investors] are waiting to see how things play out," he added.

Leading the day's primary action, the State of Connecticut came to market with $700.82 million of series 2011 general obligation bonds, said a pricing sheet.

The deal included $550 million of series 2011D G.O. bonds and $150.82 million of series 2011E G.O. refunding bonds.

The 2011D bonds are due 2012 to 2031 with 1.5% to 5% coupons. The 2011E bonds are due 2012 to 2016 with a term bond due in 2019. The serial coupons range from 1% to 5%. The 2019 bonds have a 5% coupon and priced at 120.351.

The bonds were sold through J.P. Morgan Securities LLC.

Proceeds will be used to fund capital projects and refund the state's series 2001E bonds.

Chicago sells $232.94 million

In other major offerings, the City of Chicago brought $232.935 million of series 2011 sales tax revenue bonds, said a pricing sheet.

The offering included $214.34 million of series 2011A sales tax revenue bonds and $18.595 million of series 2011B taxable bonds.

The 2011A bonds are due 2035, 2038 and 2041. The 2035 bonds have a 4.375% coupon and priced at 97.228, and the 2038 bonds have a 5.25% coupon and priced at 111.781. The 2041 bonds have a 5% coupon and priced at 105.879.

The 2011B bonds are due in 2035, have a 5.504% coupon and priced at par.

The bonds (Aa2/AAA/AA-) were sold through senior manager Loop Capital Markets LLC. Proceeds will be used to refund existing debt.

San Francisco prices COPs

Also during the session, the City and County of San Francisco brought $86.48 million of series 2011 refunding certificates of participation, said a pricing sheet.

The offering included $23.105 million of series 2011A Moscone South Project refunding COPs and $63.375 million of series 2011B Moscone North Project refunding COPs.

The 2011A COPs are due 2012 to 2024 with 2% to 5% coupons. The 2011B COPs are due 2012 to 2018 with 2% to 5% coupons.

The COPs (Aa3/AA-/A+) were sold competitively with US Bancorp winning the bid, said Nadia Sesay, spokeswoman for the city and county.

Proceeds will be used to refund the city's series 2002 and series 2004 George R. Moscone Convention Center lease revenue refunding bonds.

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