Municipals flat after FOMC holds rates steady; New York Environmental brings $493 million deal

By Sheri Kasprzak

New York, June 15 – Municipals rounded out the session Wednesday mostly flat after the Federal Open Market Committee elected to hold interest rates steady, market insiders said.

The 30-year triple-A bond yield remained at 2.39%, and the 10-year benchmark bond yield stayed at 1.53%.

Meanwhile, Treasuries staged a rally with the five-year and two-year note yields falling by 5 basis points each after the Fed left rates unmoved.

New York water bonds price

Heading up primary action, the New York State Environmental Facilities Corp. hit the market with $493,315,000 of series 2016 clean and drinking water revolving fund revenue bonds.

The bonds (Aaa/AAA/AA+) were sold through Goldman Sachs & Co.

The bonds are due 2017 to 2036 with term bonds due in 2041 and 2046. The serial coupons range from 2% to 5%. The 2041 bonds have a 5% coupon and priced at 124.518. The 2046 bonds have a 2.625% coupon that priced at 98.465 and a 4% coupon that priced at 112.683.

Proceeds will be used to finance or refinance eligible water pollution and drinking water projects in the state.

Metro Washington airport deal

In other new-issue action, the Metropolitan Washington Airports Authority sold $386,025,000 of series 2016 airport system revenue refunding bonds.

The deal included $362,655,000 of series 2016A bonds and $23.37 million of series 2016B bonds.

The 2016A bonds are due 2030 to 2036 with 4% to 5% coupons and yields from 2.44% to 2.95%. The 2016B bonds are due 2020 to 2032 with 5% coupons and 1.05% to 2.23% yields.

The bonds (A1/AA-/AA-) were sold through J.P. Morgan Securities LLC.

Proceeds will be used to refund existing revenue bonds.

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