Municipals close mixed as secondary pressure continues; Colorado brings short-term notes

By Sheri Kasprzak

New York, Dec. 19 - Municipal yields were mixed on Wednesday as secondary selling pressure mounted and primary action continued to drag, market sources said.

"Secondary selling pressure is not as bad as it has been, but it's still there," said one trader.

"Trades are happening, but it's still pretty quiet. There's not much going on in primary, so the market is looking for a direction. We seem to be mixed, which is a good sign if you compare it to the last few sessions. At least the picture isn't all bad," the trader said.

Benchmark yields on Tuesday ended higher with 10-year AAA bonds rising 8 basis points to 1.82%, a level last seen three months ago, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

"With the 10-year Treasury also at 1.82%, the [municipal/Treasury] ratio is 100%," he noted.

Colorado prices notes

Leading the light primary activity for Wednesday, the State of Colorado sold $60 million of series 2012C tax and revenue anticipation notes, according to a term sheet.

The notes were sold competitively. The issuer did not respond to requests for the winning bidder by press time Wednesday.

The notes are due June 27, 2013 and have a 2.5% coupon priced at 101.135.

Proceeds will be used to finance state capital needs ahead of the collection of taxes and revenues.

North Sumter sells bonds

In other pricing action, the North Sumter County Utility Dependent District of Florida priced $54,605,000 of series 2012 solid waste revenue bonds, according to a pricing sheet.

The deal included $50,605,000 of series 2012 solid waste revenue bonds and $4 million of series 2012 subordinate solid waste revenue bonds.

The 2012 solid waste bonds are due 2013 to 2017 with term bonds due in 2022, 2032 and 2042. The serial bonds have 5% coupons. The 2022 bonds have a 5% coupon priced at 105.934, and the 2032 bonds have a 5% coupon priced at 101.927. The 2042 bonds have a 5% coupon priced at par.

The subordinate bonds are due 2022, 2032 and 2042. The 2022 bonds have a 5% coupon priced at 104.713, and the 2032 bonds have a 5% coupon priced at 100.76. The 2042 bonds have a 97.72.

The bonds (/BBB-/A) were sold through Citigroup Global Markets Inc.

Proceeds will be used to construct and improve solid waste facilities for The Villages senior community in Wildwood, Fla.

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