Municipals start week pressured by weaker Treasuries; Kansas Development leads new offerings

By Sheri Kasprzak

New York, Aug. 10 – Municipals started off a slightly slower week weaker, pushed in part by weakness in the Treasuries market, insiders reported.

After seeing little change for last week, 30-year yields rose by about 3 basis points to 3.23% on Monday and the 10-year yield rose about 2 bps to 2.27%.

Over in the Treasuries market, as stocks improved, the 30-year Treasury bond yield rose 6 bps and the 10-year benchmark note yield also rose 6 bps.

This week will feature about $7.7 billion of new issues, slightly less than last week’s $7.8 billion slate but heavier than the $5 billion on the calendar at the end of last week.

Kansas leads deals

Heading up that slate, the Kansas Development Finance Authority will bring $1,005,435,000 of revenue bonds for its pension system.

The offering is backed by the state’s appropriation pledge.

The series 2015H bonds (Aa3/AA-/) will be offered through BofA Merrill Lynch and Wells Fargo Securities LLC.

The bonds are due 2017 to 2030 with term bonds due in 2037 and 2045.

Proceeds will be used to finance state employee pensions.

MEAG bonds ahead

One of several utility offerings coming up comes from the Municipal Electric Authority of Georgia. The authority is ready to price $436,925,000 of series 2015A Plant Vogtle bonds through Wells Fargo and U.S. Bancorp Investments Inc.

The deal includes $183.76 million of series 2015A Units 3 & 4 Project J bonds and $253,165,000 of series 2015A Units 3 & 4 Project P bonds.

Proceeds from the sale will finance the Project J and P entities’ ownership interest.

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