Municipals soften with Treasuries as market awaits $8.1 billion; MTA eyes $500 million bonds

By Sheri Kasprzak

New York, June 20 – Municipals closed Monday on a softer note, along with Treasuries, market sources said.

The triple-A 10-year bond yield rose by 2 basis points to end at 1.51%, and the 30-year bond yield rose 2 bps to 2.37%.

Meanwhile, waning interest in Great Britain leaving the European Union sent investors back to riskier shores, sending Treasuries down. The 10-year benchmark Treasury note yield rose by 5 bps to 1.67%.

New-issue action this week will pick up with about $8.1 billion of new supply coming.

MTA readies bond deal

Looking to the new supply, the Metropolitan Transportation Authority of New York is expected to price $500 million of transportation revenue refunding bonds.

The bonds will be sold through Morgan Stanley & Co. LLC and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to refund the authority’s series 2007A, 2008A and 2008B revenue bonds.

New York housing bonds set

Coming up on Tuesday, the New York State Housing Finance Agency is scheduled to price $302.69 million of series 2016C affordable housing revenue bonds.

The bonds will be sold through Morgan Stanley, J.P. Morgan Securities LLC and Siebert.

The bonds are due 2016 to 2027 with term bonds due in 2018, 2019, 2020, 2031, 2036, 2041, 2046 and 2049.

Proceeds will be used to finance mortgage loans for multifamily housing projects.

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