Municipals hold steady as new issues hit market; Colorado prices $500 million short-term notes

By Sheri Kasprzak

New York, July 19 – Municipals were largely flat on Tuesday as the week’s deals started pricing. Yields ignored improved Treasuries, with the 10-year triple A muni bond yield remaining at 1.47% and the 30-year yield at 2.26%.

Elsewhere, stocks were mixed on the session, sending Treasuries back up. Treasuries shook off an early dip after housing starts for June were reportedly higher than expected.

The 10-year Treasury benchmark note and 30-year bond yields fell by 3 basis points to 1.56% and 2.27%, respectively.

Colorado brings TRANs

Among Tuesday’s new-issue action, Colorado priced $500 million of series 2016A general fund tax and revenue anticipation notes. The offering was downsized from $600 million.

The notes (MIG 1/SP-1+) were sold competitively and mature June 27, 2017.

Proceeds will be used to finance cash shortfalls in the coming fiscal year.

Baltimore County G.O.s price

In other new offerings, Baltimore County, Md., priced $150 million of series 2016 taxable general obligation bonds.

The bonds (Aaa) were sold through J.P. Morgan Securities LLC.

The bonds are due 2017 to 2036 with a term bond due in 2046. The serial coupons range from 0.60% to 3.088% and all priced at par. The 2046 bonds have a 3.303% coupon and priced at par.

Proceeds will be used to finance unfunded pension plan liabilities.

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