Municipals weaken somewhat after early Treasury losses; Florida BOE brings $220.52 million

By Sheri Kasprzak

New York, Sept. 3 – Despite an afternoon turnaround for Treasuries, municipals couldn’t shake off some early weakness, with yields climbing by 1 to 2 basis points, particularly on the short end, said traders in the afternoon.

Treasuries got off to a rocky start, but foreign turmoil led to a late-day turnaround in which the 10-year and 20-year note yields fell by 1 bp each and the 30-year bond yield fell by 2 bps.

Supply, meanwhile, remained light on the day, even as a sizable deal from the Florida Board of Education hit the market.

Heading up the day’s activity, the Florida BOE brought $220.52 million of series 2014C public education capital outlay bonds.

The bonds are due 2015 to 2035 with 2% to 5% coupons and 0.15% to 3.30% yields.

The bonds were sold competitively, but the winning bidder was not immediately available.

Proceeds will be used to refund a portion of the board of education’s series 2002E and 2005E capital outlay bonds.

First of ISD bonds sold

In a week packed with offerings from Texas-based independent school districts, the La Porte Independent School District’s $99,675,000 of series 2014 unlimited tax schoolhouse general obligation bonds were the first to price on Wednesday.

First Southwest Co. was the senior manager for the bonds (Aa2/AA/).

The bonds are due 2015 to 2034 with a term bond due in 2039. The serial coupons range from 1.5% to 5%. The 2039 bonds have a 5% coupon and priced at 115.768.

Proceeds will be used to finance the construction of several new school buildings and other various capital improvements.

The Houston Independent School District is expected to come to market this week with a $350 million variable-rate offering, which is the largest offering on the calendar.

The Keller Independent School District is also on tap to price $59,455,000 of bonds.

Palm Beach offers debt

Elsewhere during the session, Palm Beach County, Fla., sold $72,465,000 of series 2014A public improvement revenue refunding bonds, said a pricing sheet.

The bonds (Aa1/AA+/AA+) were sold competitively.

The bonds are due 2015 to 2027 with 3% to 5% coupons.

Proceeds will be used to refund the county’s series 2006 and 2007A-C public improvement bonds.

The deal is one of several from the Palm Beach area slated to hit the market.

The Palm Beach County Health Facilities Authority is also expected to price $90,555,000 of refunding bonds for the BRRH Corp. Obligated Group through Citigroup Global Markets Inc. Also ahead, the Northern Palm Beach County Improvement District is slated to sell $55,875,000 of water control and improvement bonds through Raymond James/Morgan Keegan and FMSbonds Inc.

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