Municipals end lower despite gain for Treasuries; Wisconsin offers $391.33 million G.O. bonds

By Sheri Kasprzak

New York, Sept. 1 – Municipals hit a snag on Tuesday with yields rising as much as 3 basis points in spots despite a stronger Treasuries market, traders reported.

Yields on some top-rated munis rose as much as 3 bps Tuesday afternoon, said a trader. The 10-year note yield, specifically, rose 3 bps to close the session at 2.23%, the trader reported.

Meanwhile, weak manufacturing data indicated weakness for the sector in both July and August. This pushed the five-year Treasury note yield down 5 bps and the two-year yield down 4 bps.

Wisconsin tops slate

Meanwhile in the primary market, the State of Wisconsin led a very quiet day for the primary market, selling $391.33 million of series 2015C general obligation bonds.

The bonds were sold competitively. The issuer did not respond to requests for the winning bidder by press time Tuesday.

The bonds are due 2017 to 2036 with 4% to 5% coupons.

Proceeds will be used to finance statewide capital projects.

Dasny deal ahead

The Dormitory Authority of the State of New York offered its $1 billion of series 2015E general purpose state personal income tax revenue bonds for retail investors Tuesday and will finalize pricing for institutions on Wednesday. It’s the largest offering of the week, which is expected to see a meager $3 billion of issuance ahead of the Labor Day holiday.

The bonds (Aa1) will be offered through a syndicate led by J.P. Morgan Securities LLC, BofA Merrill Lynch and Loop Capital Markets LLC.

The authority plans to use the proceeds to refund existing debt.

Valparaiso bonds to price

In other upcoming deals, the City of Valparaiso, Ind., is ready to price $143,035,000 of mortgage bonds (//AA+) through City Securities Corp. this week.

The bonds are due 2018 to 2035.

Proceeds will finance school capital projects.

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