Municipals strengthen with Treasuries as final deals price; Connecticut brings $523.62 million

By Sheri Kasprzak

New York, March 17 – Municipals ended the session stronger along with Treasuries as the week’s final offerings hit the market, insiders said.

The 10-year triple-A benchmark bond yield ended the day 2 basis points lower at 1.89%, and the 30-year bond yield edged 1 bp lower to 2.90%.

Meanwhile, Treasuries were pushed higher by rising jobless claims and on a declining likelihood of another Fed rate hike this year.

The 30-year Treasury bond yield fell by 4 bps to 2.69%, and the 10-year note ended the day 3 bps lower at 1.91%. The five-year note yield closed 2 bps lower at 1.39%, and the two-year yield held steady at 0.87%.

Elsewhere in the muni market, municipal mutual funds continue to see inflows with $1 billion of new assets reported for the week ended March 9, according to the Investment Company Institute.

Looking ahead, 30-day visible supply is hitting a slump with only $4.9 billion on tap.

Connecticut prices G.O. bonds

Among the bigger new issues priced Thursday, the State of Connecticut came to market with $523,619,055 of series 2016A general obligation bonds, downsized from $550 million.

The bonds (Aa3/AA/AA) are due 2017 to 2035 with 2% to 5% coupons.

The bonds were sold through senior manager Ramirez & Co. Inc.

Proceeds will be used to finance capital expenditures for the state.

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