Municipals close weaker after Treasuries hit a slump; Miami-Dade County School brings bonds

By Sheri Kasprzak

New York, July 12 – Municipals rounded out the session softer, moving in line with weaker Treasuries, market insiders said.

The 10-year triple-A muni bond yield rose by 5 basis points to 1.42%, and the 30-year bond yield rose 6 bps to 2.20%.

Meanwhile, Treasuries hit a snag after a less-than-stellar 10-year Treasury note auction. The 30-year bond yield jumped by 10 bps to 2.24%, and the 10-year note yield rose by 9 bps to 1.82%. The five-year note yield climbed 7 bps to 1.10%, and the two-year note yield edged up 3 bps to 0.69%.

Meanwhile, stocks rallied with the Dow Jones industrial average rising 120.74 points to 18,347.67 and the Nasdaq climbing 34.18 points to 5,022.82. The S&P 500 ended the session up 14.98 points at 2,152.14.

Miami-Dade school bonds price

Moving to the day’s new-issue action, the Miami-Dade County School District of Florida hit the market with $290 million of series 2016 tax anticipation notes.

The notes (MIG 1) were sold competitively. The issuer did not immediately respond to requests for the winning bidder.

The notes are due Feb. 23, 2017, have a 5% coupon and priced at 102.572 to yield 0.47%.

Proceeds will be used to finance cash requirements ahead of the collection of certain taxes.

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