Municipals hold steady ahead of $6.7 billion new-issue calendar; Michigan Building preps deal

By Sheri Kasprzak

New York, July 18 – Municipal were flat Monday as the market prepared for about $6.7 billion of new issues this week.

The 10-year triple-A muni bond yield remained at 1.47% and the 30-year yield at 2.26%.

Treasuries were also mostly flat. The 10-year benchmark note yield edged 1 basis point lower at 1.59%, as did the five-year note yield to 1.14%. The two-year note yield fell by 3 bps to 0.68%. The 30-year bond yield held steady at 2.30%.

Stocks improved on the day, with the Dow Jones industrial average up 16.50 points at 18,533.05, the Nasdaq up 26.19 points at 5,055.78, and the S&P 500 up 5.15 points at 2,166.89.

Michigan building bonds set

Heading up the subdued new-issue calendar for the week is a $665 million offering of revenue and refunding bonds from the Michigan State Building Authority.

The authority plans to price the bonds (Aa2/A+/AA-) through senior managers Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.

Proceeds will refund existing commercial paper notes and the authority’s series 2008 revenue bonds.

Colorado TRANs ahead

Coming up on Tuesday, Colorado is on deck to price $600 million of series 2016A general fund tax and revenue anticipation notes (MIG 1/SP-1+).

The notes will be sold competitively and are due June 27, 2017.

Proceeds will fund cash shortfalls in the coming fiscal year.

Columbus eyes deal

In other competitive offerings, Columbus, Ohio, is scheduled to price $481.4 million of general obligation securities (Aaa/VMIG 1/AAA/AAA).

The offering is comprised of $372,315,000 of series 2016A various purpose unlimited tax G.O. bonds due 2018 to 2037, $81.35 million of series 2016B various purpose limited tax G.O. bonds due 2018 to 2033, $2,575,000 of series 2016C taxable various purpose unlimited tax G.O. bonds due 2018 to 2032, $13.36 million of series 2016D taxable various purpose limited tax G.O. bonds due 2018 to 2030 and $11.8 million of series 2016 various purpose limited tax G.O. notes due Aug. 4, 2017.

Proceeds will finance capital expenditures, including public health and safety, parks and recreation, utility and other projects.

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