Municipals close weaker as new issues price; Nevada brings $292.6 million of improvement bonds

By Sheri Kasprzak

New York, Feb. 17 – Municipals rounded a busy session on a weaker note as a few of the week’s larger deals came to market, insiders reported.

Yields on top-rated munis rose by 1 to 2 basis points with the 10-year benchmark note yield rising about 1 bp to 1.73% and the 30-year yield up 2 bps at 2.78%.

Meanwhile, Treasuries slipped on the session, driven down by positive economic data, including improved Producer Price Index numbers and mortgage applications. The data caused the 30-year bond yield to rise by 4 bps and the 10-year note yield to climb 3 bps.

Given the week’s lighter supply, trading volume has reportedly dropped off with MSRB volume seen at $6.4 billion on Tuesday, slipping below the $7.9 billion 30-day average, a market source said Wednesday morning.

Nevada, S.C. deals price

Among the new issues priced Wednesday, Nevada reportedly offered $292.6 million of motor vehicle fuel tax improvement and refunding bonds in the competitive market.

The full details of the deal were not immediately available Wednesday afternoon, but the bonds are due 2017 to 2029 with yields from 0.55% to 2.67%.

Elsewhere in the competitive arena, York County, S.C., priced $108.97 million of series 2016 general obligation bonds.

The bonds (Aa1/AA+/) are due 2017 to 2031 with 3% to 5% coupons and yields from 0.50% to 2.91%.

Proceeds will be used to finance countywide capital improvements.

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