Municipals end mixed ahead of massive $12.7 billion calendar; Georgia eyes $1.37 billion deal

By Sheri Kasprzak

New York, June 3 – Municipals rounded out a quiet session on a mixed note as the market awaits about $12.7 billion of new offerings, market insiders said.

Municipals were stronger in most spots with some intermediate bonds rising as much as 2 basis points, a trader said. The 10-year triple-A muni bond yield fell by 3 bps to 1.67%.

Meanwhile, Treasuries rallied after the Department of Labor reported fewer jobs were created than economists expected with just 38,000 created in May. The five-year Treasury note yield plummeted by 13 bps and the two-year yield by 11 bps.

Looking to the week ahead, new-issue supply will get a boost, highlighted by two $1 billion-plus deals.

Georgia eyes G.O. bonds

The largest offering of the week will come on Tuesday from Georgia. The state plans to price $1,367,335,000 of general obligation bonds in four tranches.

The bonds will be sold competitively.

The deal includes $717.29 million of series 2016A bonds due 2017 to 2036, $199.87 million of series 2016B taxable bonds due 2017 to 2036, $382.19 million of series 2016C refunding bonds due 2017 to 2027 and $67,985,000 of series 2016D taxable refunding bonds due 2017 to 2026.

Proceeds will finance capital projects and refund existing G.O. bonds.

Maryland G.O. bonds ahead

Another state with a massive G.O. deal ahead is Maryland. That state is set to price $1,036,000,000 of G.O. bonds (Aaa/AAA/AAA) on Wednesday.

The bonds will also be sold competitively.

These bonds are due 2019 to 2031.

Proceeds will finance the acquisition and construction of state facilities; capital grants to local governments for public schools, community colleges and jails and correctional facilities; and matching-fund loans and grants to local governments, nonprofit institutions and other entities for hospitals, cultural projects and other projects.

© 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.