Municipals get boost from weaker-than-expected nonfarm payrolls; $5 billion of supply ahead

By Sheri Kasprzak

New York, Sept. 4 – Municipals capped off a slow week on a positive note with yields on top-rated munis flat to 2 basis points lower, traders reported.

Munis were pushed in part by a rally for Treasuries following weaker-than-anticipated nonfarm payrolls for August. August’s figure came in at 173,000, far below economists’ 217,000 expectation.

Looking ahead, new-issue volume will pick up slightly but will remain relatively light in the Labor Day-shortened week. About $5 billion of new offerings are coming up in the week ahead.

Trading volume remained extremely low during the week with just over $6 billion of volume reported Thursday, according to the MSRB, the slowest session of the year so far.

Elsewhere, municipal-to-Treasury ratios were higher with 10-year munis at 102% of the 10-year Treasury yield and the 30-year muni yield at 109% of the 30-year Treasury yield.

North Texas deal planned

Heading up the week’s sparse primary calendar, the North Texas Tollway Authority is expected to hit the market Thursday with $750 million of series 2015B system first-tier revenue refunding bonds (A1/A/).

The bonds will be sold on a negotiated basis with Barclays and Loop Capital Markets LLC.

The bonds are due 2016 to 2035.

Proceeds will be used to refund a portion of the authority’s series 2008A-B and 2009A revenue bonds.

MTA preps bonds

Also coming up, the Metropolitan Transportation Authority of New York is ready to price $500 million of bond anticipation notes Wednesday.

The bonds will be sold competitively and are due June 1, 2016.

Proceeds will be used to finance commuter and transit projects.

Allina deal set

On Wednesday, the Allina Health System of Minnesota is slated to price $250 million of taxable bonds (Aa3/AA-/AA-).

The bonds will be sold through J.P. Morgan Securities LLC and are due Nov. 15, 2045.

Proceeds will be used for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.