Municipals somewhat softer as market awaits $13.6 billion slate; New York prepares G.O. sale

By Sheri Kasprzak

New York, March 9 – The municipals market was a touch weaker on Monday as investors await the largest slate of new offerings so far this year, market sources said.

Yields were up by about a basis point for the day as Treasuries started out the session weaker and as trading activity remained rather light, a trader said. Even as Treasuries improved on the day, muni yields still felt pressured.

Meanwhile, about $13.6 billion of new offers will hit the market this week, led again by offerings out of California, this time two deals from the University of California, including a $1.66 billion sale and a $1.14 billion offering.

New York, MTA among deals

Tuesday’s new issue slate is filled with major issuers, including a $325,385,000 general obligation offering from the State of New York.

The bonds (/AA+/) will be offered competitively and will be sold in three tranches.

The deal is comprised of $139.47 million of series 2015A tax-exempt bonds, $5,645,000 of series 2015B taxable bonds and $180.27 million of series 2015C tax-exempt refunding bonds.

The state plans to use the proceeds from the deal for capital expenditures and to refund existing bonds.

Also coming out of the Empire State Tuesday is an offering from the Metropolitan Transportation Authority, which is set to price $300 million of series 2015B transportation revenue bonds through senior managers BofA Merrill Lynch, Citigroup Global Markets Inc., Duncan-Williams Inc., KeyBanc Capital Markets Inc. and Oppenheimer & Co.

The bonds are due 2015 to 2035, and the authority intends to use the proceeds to finance legal and miscellaneous transportation expenditures and to retire its series 2013A revenue bond anticipation notes.

Boston deal ahead

Also on Tuesday, Boston is set to price $269,955,000 of series 2015 G.O. bonds on a competitive basis.

That deal includes $140 million of series 2015A G.O. bonds and $129,955,000 of series 2015B G.O. refunding bonds.

Proceeds will be used to refund the city’s series 2005A, 2006A, 2007A, 2008A and 2009A G.O. bonds and to finance capital projects for the city.

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