Municipals flat to stronger as week’s remaining deals price; North Texas Tollway prices

By Sheri Kasprzak

New York, May 5 – Municipals were steady to slightly better on Thursday, market insiders said, as the remainder of the week’s new issues hit the market.

Longer maturities held steady while the middle of the curve saw some improvement. The 10-year triple-A muni bond yield fell by 2 basis points to 1.65%.

Meanwhile, Treasuries were boosted by jumping jobless claims. The 30-year Treasury bond yield fell by 4 basis points to 2.60%, and the 10-year note yield fell 3 bps to 1.76%. The five-year and two-year note yields both ended 3 bps lower at 1.20% and 0.72%, respectively.

Jobless claims climbed by 17,000 to 274,000 for the week ended April 30, according to a report from the Department of Labor.

North Texas brings bonds

Heading up the week’s offerings, the North Texas Tollway Authority hit the market with $987.79 million of series 2016A system first-tier revenue refunding bonds. The deal was upsized from $947.02 million.

The bonds (A1/A) were sold through senior manager J.P. Morgan Securities LLC.

The bonds are due 2017 to 2036 with a term bond due in 2039. The serial bonds have 5% coupons with yields from 0.67% to 2.78%. The 2039 bonds have a 4% coupon priced at 107.153 to yield 3.13% and a 5% coupon priced at 117.916 to yield 2.85%.

Proceeds will be used to refund a portion of the authority’s series 2008A-B, 2008K and 2009A revenue bonds.

New York Thruway prices deal

In other transportation deals, the New York State Thruway Authority priced $850 million of series 2016A general revenue junior obligations.

The bonds (A3/A-) were sold through senior managers Citigroup Global Markets Inc. and Siebert Brandford Shank & Co. LLC.

The bonds are due 2021 to 2038 with term bonds due in 2041, 2046, 2051 and 2056. The serial coupons range from 3% to 5% with 1.13% to 3.06% yields. The 2041 bonds have a 5% coupon priced at 117.448 to yield 2.91%, and the 2046 bonds have a 5% coupon priced at 116.899 to yield 2.97%. The 2051 bonds have a 4% coupon priced at 105.143 to yield 3.37% and a 5% coupon priced at 116.08 to yield 3.06%. The 2056 bonds have a 4% coupon priced at 104.139 to yield 3.49% and a 5.25% coupon priced at 118.061 to yield 3.07%.

Proceeds will be used to finance the construction of the new New York bridge project.

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