Municipals tumble again as Treasuries face weakness in wake of sell-off; L.A. school deal ahead

By Sheri Kasprzak

New York, May 1 – Municipals were weaker yet again on Friday as Treasuries grappled with a sell-off, market insiders said.

Yields on municipals were higher by about 4 bps in spots, said a trader in the afternoon.

A sell-off in the Treasuries market sent the 10-year note and 30-year bond yields higher by 7 bps despite some lackluster economic data.

The week ahead will offer a bit more supply. The calendar for the week just ended was less than $5 billion, the first time the calendar has been that low in several weeks.

L.A. USD deal set

That action will be led by a competitive sale from the Los Angeles Unified School District. The offering will be conducted Tuesday.

The bonds (Aa2/AA-/) are due 2015 to 2025.

The district intends to refund its series 2005A-1 and 2005A-2 general obligation bonds with the proceeds.

Health-care bonds abound

Recent weeks have provided a steady supply of health-care offerings, and the week ahead will be no different. The sector will feature a deal from the Lee Memorial Health System of Florida, which is on tap to price $277,065,000 of revenue and refunding bonds (A2/A/) on Wednesday.

The bonds will be sold through BofA Merrill Lynch.

Proceeds will be used to finance a construction project at the Golisano Children’s Hospital of Southwest Florida in Fort Myers and to refund existing revenue bonds.

Rex Healthcare out of North Carolina is set to price $50 million of series 2015 health-care facilities revenue bonds (A2/AA-/AA-) through the North Carolina Medical Care Commission on Wednesday.

The bonds will be sold through BofA Merrill Lynch and Wells Fargo Securities LLC.

Proceeds will finance capital improvements and upgrades to Rex facilities.

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