Municipals close a touch weaker ahead of $8.6 billion supply; California G.O. offering ahead

By Sheri Kasprzak

New York, March 4 – Municipals ended a busy week a touch softer, following in line with Treasuries, which were knocked down by strong nonfarm payrolls numbers, market sources said.

The yield on the triple-A 10-year muni bond rose by 2 basis points to 1.90%, and the 30-year yield rose by 3 bps to 2.94%.

Looking to the week ahead, about $8.6 billion of new issues will be on the slate, dominated by a $2.3 billion sale out of the Golden State.

California preps G.O. bonds

Leading the week’s supply is a $2.3 billion deal from California. The state plans to sell various purpose general obligation bonds in four tranches: $830 million of various purpose bonds, $65 million of school facilities bonds, $1,155,000,000 of various purpose G.O. refunding bonds and $250 million of mandatory put bonds.

The bonds (Aa3/AA-/A+) will be sold through senior managers Goldman Sachs & Co. and Citigroup Global Markets Inc., and proceeds will be used to finance various capital projects, including school projects; to repay commercial paper notes and to refund existing bonds.

NYC housing deal set

Also coming up during the week is a $359,255,000 multi-tranche deal from the New York City Housing Development Corp.

The corporation will price multifamily housing bonds comprised of $66,445,000 of series 2016A fixed-rate bonds, $21.77 million of series 2016B term-rate bonds, $213,165,000 of series 2016C term-rate bonds, $54.09 million of series 2016D fixed-rate bonds and $3,755,000 of series 2016K fixed-rate bonds.

The bonds will be offered through senior managers J.P. Morgan Securities LLC, Barclays and Citigroup.

Proceeds will finance mortgage loans for affordable multifamily housing projects in the city.

© 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.