Municipals rally for second session as Dasny prices for retail; Miami-Dade brings $375 million

By Sheri Kasprak

New York, Jan. 6 – Municipals continued their rally into a second session this week, with yields falling by 3 to 5 basis points, traders said.

The 30-year bond yield fell by about 5 bps on the session, to close at 2.73%, the lowest level since last January.

Munis followed in line with rallying Treasuries, which have been getting a boost from sliding oil prices. Municipals, however, underperformed Treasuries. The 30-year Treasury bond yield on Tuesday fell by 8 bps and the 10-year benchmark Treasury yield fell by 7 bps to below 2%.

Dasny open for retail

Looking to the upcoming supply, the Dormitory Authority of the State of New York held a retail order period for its $1 billion of general purpose state personal income tax bonds (/AAA/AA+) Tuesday. Institutional pricing is set for Wednesday.

Barclays, Citigroup Global Markets Inc. and Rice Financial Products Co. are leading the syndicate for the deal, the proceeds of which will refund the authority’s series 2003, 2004A and 2005A-B personal income tax bonds.

Miami-Dade prices debt

Leading Tuesday’s primary activity, Miami-Dade County, Fla., hit the market with $375.12 million of series 2015 general obligation bonds.

The offering included $49.99 million of series 2015A parks program G.O. refunding bonds, $230,215,000 of series 2015B Building Better Communities program G.O. refunding bonds and $94,915,000 of series 2015C public health trust G.O. bonds, according to pricing sheets.

The 2015A bonds are due 2020 to 2030 with 3% to 5% coupons and 1.62% to 3.162% yields.

The 2015B bonds are due 2020 to 2035 with 3% to 5% coupons and yields from 1.56% to 3.29%.

The 2015C bonds are due 2015 to 2037 with a term bond due in 2044. The serial coupons range from 2% to 5% with yields from 0.30% to 3.35%. The 2044 bonds have a 4% coupon priced at 103.095 to yield 3.61%.

The bonds (Aa2/AA/) were sold competitively, but the issuer did not immediately respond to requests for the winning bidder.

Proceeds will be used to refund existing debt and finance projects for the county’s public health trust program.

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