Municipals close little changed amid light trading; primary to slow ahead of Thanksgiving

By Sheri Kasprzak

New York, Nov. 21 – Municipals were unmoved Friday as primary and secondary action took a break, market insiders said.

Yields largely ignored improved Treasuries during the sluggish session, a trader said. Spots of strength were seen, according to the trader, but the movements were slight.

In the week ahead, the new-issue calendar is expected to be a bit sparser ahead of the Thanksgiving holiday.

“It looks like a quiet week [ahead],” said one market insider during the afternoon.

Minnesota power sells debt

Although primary action was quiet Friday, the Minnesota Municipal Power Agency hit the market with $75.25 million of series 2014A electric revenue refunding bonds, according to a pricing sheet.

The bonds (A2//A) were sold through BofA Merrill Lynch.

The bonds are due 2016 to 2035 with 3.5% to 5% coupons and 0.5% to 3.36% yields.

Proceeds will be used to advance refund the agency’s series 2005 revenue bonds.

Connecticut G.O.s unchanged

Moving to secondary action, the State of Connecticut’s series 2014F general obligation bonds were seen trading Friday a day after pricing.

Yields on its 3.5% 2033s were seen flat a 3.61% after trading in a range of 3.38% to 3.647%.

The bonds priced on Thursday as part of a three-tranche offering through J.P. Morgan Securities LLC.

The 2014G green bonds were also traded actively during the session. The 3.25% 2029s ended the session at 3.36%, unchanged from its pricing level on Thursday.

Elsewhere in the secondary, the Virginia Small Business Authority’s bonds for Hampton University also saw a great deal of trading activity.

The 4% 2038s were seen trading Friday afternoon at 3.99% after pricing Thursday to yield 4.14%.

The bonds priced through Rice Financial Products Co.

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