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Municipals end flat as action slows; $3 billion of supply ahead, led by $1 billion from Dasny
By Sheri Kasprzak
New York, Aug. 31 – Municipals rounded out a quiet session mostly unchanged as the market readied for one of the slowest weeks of the summer, traders said.
With Labor Day coming up, this week’s new-issue slate features a sparse $3 billion of supply.
Monday kicked off with the 10-year yield holding at 2.18% and the 30-year at 3.20%. The market turned a blind eye to a tumble for Treasuries.
M/T ratios below 100%
The municipals/Treasury ratio for the 10-year maturity is now sitting at just below 100% for the first time in three weeks, thanks to munis’ outperformance of Treasuries late last week.
About $345 million of outflows were reported by Lipper Inc. for the week ended Aug. 26, the strongest pace of outflows since July.
PRASA gets extension
Moving to Puerto Rico news, the Puerto Rico Aqueduct and Sewer Authority has been granted an extension to repay a $90 million credit facility, which had been due Monday, said a statement from the authority.
The repayment was thrown into question after the authority delayed its $750 million bond offering, with which it planned to repay the facility with Banco Popular de Puerto Rico. The timing of the deal is still day-to-day.
Dasny leads deals
Heading up the paltry calendar is a $1 billion offering from the Dormitory Authority of the State of New York.
Dasny is poised to price series 2015E general purpose state personal income tax revenue bonds (Aa1) during the week.
J.P. Morgan Securities LLC, BofA Merrill Lynch and Loop Capital Markets lead the syndicate selling the bonds.
Proceeds will refund existing debt.
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