Municipals end steady as new issues hit market; 10-year yield at 1.72%, 30-year yield at 2.72%

By Sheri Kasprzak

New York, April 6 – The municipals market remained flat Wednesday, ignoring weaker Treasuries, traders said.

The 10-year triple-A benchmark bond yield held steady at 1.72% and the 30-year yield at 2.72%.

Meanwhile, over in the Treasuries market, stronger stocks and oil prices pushed yields higher by 1 basis point to 4 bps.

San Francisco details G.O.s

During the session, the City and County of San Francisco released additional information on its $252,185,000 of series 2016 general obligation bonds.

The bonds (Aa1/AA+/AA+) were sold competitively with Citigroup Global Markets Inc. winning the bid at a 2.57% true interest cost.

As previously reported, the offering was upsized from $179.42 million and included $73.23 million of series 2016C earthquake safety and emergency response bonds, $134.81 million of series 2016D earthquake safety and emergency response bonds and $44,145,000 of series 2016E road repaving and street safety bonds.

The 2016C bonds are due 2017 to 2036 with a term bond due in 2041. The serial coupons range from 2% to 5% with 0.74% to 2.98% yields. The 2041 bonds have a 5% coupon and priced at 117.668 to yield 2.99%.

The 2016D bonds are due 2016 to 2035 with 2.25% to 5% coupons and yields from 0.40% to 3.01%.

The 2016E bonds are due 2016 to 2035 with coupons from 2.25% to 5% coupons and yields from 0.40% to 3.01%.

The proceeds will be used to fund improvements to fire, earthquake and emergency response infrastructure; fix potholes; repave failing streets; repair and strengthen stairways, bridges and overpasses; and construct and renovate the city’s traffic infrastructure.

San Diego school bonds price

In other California news, the San Diego Unified School District brought $145,915,000 of series 2016S-R1 G.O. refunding bonds.

The bonds (Aa2//AAA) were sold through Stifel, Nicolaus & Co.

The bonds are due 2028 to 2033 with 3% to 5% coupons and yields from 1.98% to 3.00%.

Proceeds will be used to refund outstanding G.O. debt.

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