Municipals climb along with Treasuries amid strong primary and secondary; Michigan brings debt

By Sheri Kasprzak

New York, Aug. 14 – Municipals were improved across the yield curve Thursday, following Treasuries, which gained ground on a successful 30-year bond auction and international news, market insiders said.

Yields were better by 2 basis points to 3 bps.

Over in Treasuries, the 30-year bond yield fell by 5 bps to close at 3.189%, driven in no small part by the auction of $16 billion of 30-year bonds at a 3.224% yield. The 10-year note yield fell by 3 bps to 2.398%, and the five-year note yield fell by 1 bp to 1.567%.

Municipals experienced strong secondary action, said a trader during the afternoon, with some bumps seen in long tax-exempt bonds.

Michigan sells bonds

Moving to specific offerings for the day, the State of Michigan brought to market $266,455,000 of series 2014 state trunk line fund refunding bonds.

The bonds were sold through senior managers Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.

The bonds are due 2015 to 2021 with 2% to 5% coupons and 0.15% to 1.83% yields, according to a pricing sheet.

Proceeds will be used to refund the state’s series 2004 state trunk line fund bonds, series 2005B state trunk line fund refunding bonds and 2006 state trunk line fund bonds.

College Station debt prices

Elsewhere, the City of College Station, Texas, offered up $69.87 million of series 2014 general obligation bonds and certificates of obligation.

The deal included $35,865,000 of series 2014 G.O. improvement and refunding bonds and $34,005,000 of series 2014 COPs, said a pricing sheet.

The G.O. bonds are due 2015 to 2034 with 2% to 5% coupons. The COPs are due 2015 to 2034 with coupons from 2% to 5%.

The issue (Aa2/AA+/) was sold through Raymond James/Morgan Keegan.

Proceeds will be used to finance improvements to city streets, parks, electric utility facilities and library facilities and to refund the city’s series 2005A utility system refunding bonds, its series 2006 utility system revenue bonds and its series 2006 G.O. bonds and COPs.

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