Munis weaker as Treasury yields rise; New York TFA, Washington, California on deal calendar

By Cristal Cody

Tupelo, Miss., Aug. 3 - Municipals traded weaker as longer-dated Treasury yields climbed nearly 10 basis points on Friday following better-than-expected job data.

"Muni yields finished higher also," an informed market source said. "Munis are soft today, but it's very quiet. Summer, things slow down."

The Labor Department said in a report that 163,000 jobs were added in July, higher than the 100,000 forecast.

The week ahead includes pricing action from the New York City Transitional Finance Authority, Washington and Minnesota, a bond source said.

"The calendar's moderate," the source said. "We'll just have to see how Treasuries do."

The New York City Transitional Finance Authority is expected to sell $1.65 billion of future tax secured bonds, while Minnesota intends to bring $658.5 million of general obligation state bonds.

Washington's offering set to price on Tuesday will include $703.27 million of G.O. refunding bonds.

California plans $10 billion

One large offering is on the calendar for later in the month from the State of California.

The state (A1/A-/A-) plans to price $10 billion of revenue anticipation notes on Aug. 16, according to the treasurer's office.

Additional deal terms on the series 2012-2013 notes were not immediately available.

New York TFA to price

The New York City Transitional Finance Authority expects to sell $1.65 billion of future tax secured bonds during the week of Aug. 6, a bond source said on Friday.

The offering includes $450 million of fiscal 2013 series A bonds, $100 million of series A1 subordinated bonds, $150 million of subseries A2 subordinated bonds, $200 million of subseries A3 subordinated bonds and $750 million of fiscal 2013 series B subordinated bonds, according to a preliminary official statement.

The series A and subseries A1 bonds have serial maturities from 2014 through 2017 and 2024 through 2026.

The subseries A2 bonds are due Aug. 1, 2034.

The subseries A3 bonds have serial maturities from 2017 through 2024.

The series B bonds have serial maturities from 2013 through 2032.

Bank of America Merrill Lynch is the senior manager of the negotiated sale. The co-managers are Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Cabrera Capital Markets, Inc., Fidelity Capital Markets LLC, Jackson Securities LLC, Jefferies & Co., Loop Capital Markets LLC, M.R. Beal & Co., Ramirez & Co., Inc., Rice Financial Products Co., Roosevelt and Cross Inc., Siebert Brandford Shank & Co. LLC, Wells Fargo Bank, NA, Oppenheimer & Co., Inc., Raymond James/Morgan Keegan, RBC Capital Markets Corp., Southwest Securities, Inc. and Stifel Nicolaus & Co. Inc.

The deal is expected to close Aug. 28.

Proceeds will be used to finance general city capital expenditures and the construction and repair of public schools, for capital purposes and to refund outstanding bonds.

Mississippi to price

In other upcoming deals, Mississippi intends to sell $270,955,000 of G.O. refunding bonds (Aa2/AAAA+), according to a preliminary official statement.

The offering includes $73.16 million of series 2012E bonds due Dec. 1, 2012 and 2015-2025 and $197,795,000 of series 2012F bonds due Nov. 1, 2012 and 2016-2025.

Citigroup Global Markets Inc. is the bookrunner for the series 2012E bonds.

Raymond James/Morgan Keegan is the bookrunner for the series 2012F bonds.

The co-managers are Duncan-Williams, Inc., Loop Capital Markets LLC and Stephens Inc.

Proceeds will be used to advance refund and defease outstanding G.O. bonds.

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