Municipals end flat to better in quiet pre-Thanksgiving session; Minnesota Housing bonds price

By Sheri Kasprzak

New York, Nov. 25 – Municipals were somewhat stronger Wednesday ahead of the Thanksgiving break in line with Treasuries, traders reported.

Yields on some top-rated munis were lower by about 1 basis point.

Over in Treasuries, a solid seven-year note auction led to a stronger 10-year note yield with the yield falling by 1 bps. The rest of the market held steady.

Despite the light action, the week ahead will pick up again with about $6.5 billion of supply anticipated.

MTA leads supply

The week of Nov. 30 will feature a $700 million offering of transportation revenue bond anticipation notes from the Metropolitan Transportation Authority of New York.

The offering includes $628 million of series 2015B-1 tax-exempt bonds due Aug. 1, 2016 and $72 million of series 2015B-2 taxable bonds with maturities from August 2016 through February 2018.

The bonds will be sold competitively on Wednesday.

Proceeds will be used to finance existing approved transit and commuter projects.

Minnesota Housing sells debt

The largest deal of the Thanksgiving week came from the Minnesota Housing Finance Agency, which offered $136,555,000 of series 2015 residential housing finance bonds.

The deal included $96.93 million of series 2015E AMT bonds and $39,625,000 of series 2015F non-AMT bonds.

The 2015E bonds are due 2016 to 2023 with a term bond due in 2046. The serial coupons range from 0.60% to 2.65% and all priced at par. The 2046 bonds have a 3.5% coupon and priced at 105.197.

The 2015F bonds are due 2023 to 2026 with a term bond due in 2029. The serial coupons range from 2.35% to 2.95% and all priced at par. The 2029 bonds have a 3.3% coupon and priced at par.

The bonds (Aa1/AA+/) were sold through RBC Capital Markets LLC.

Proceeds will refund outstanding bonds in the Residential Housing Finance Bonds Resolution and purchase mortgage-backed securities backed by mortgage loans for low- and moderate-income residents of Minnesota.

© 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.