Municipals end weaker as Treasuries tumble; week to provide $10.7 billion of new-issue supply

By Sheri Kasprzak

New York, June 22 – Municipal yields rose Monday in sympathy with Treasuries, market insiders said, as the week will welcome heavier supply.

After a dip in activity last week, this week will see about $10.7 billion of new issues.

Yields on top-rated munis rose by 3 to 5 basis points in the afternoon, said a trader, far outperforming Treasuries. The 10-year benchmark Treasury note yield and the 30-year bond yield both rose by 11 bps.

L.A. notes lead calendar

Heading up the week’s new-issue calendar, Los Angeles is slated to price $1,386,045,000 of series 2015 tax and revenue anticipation notes on Wednesday.

The notes (MIG 1/SP-1+/) will be sold through senior managers Stifel, Nicolaus & Co. Inc. and J.P. Morgan Securities LLC.

The notes are due June 30, 2016.

Proceeds will be used to finance capital improvement projects in the coming fiscal year.

Massachusetts G.O.s ahead

Another major offering comes from Massachusetts, which will be in the market during the week with $938.86 million of general obligation bonds (Aa1/AA+/AA+) in a two-tranche deal.

The deal includes $250 million of series 2015C consolidated G.O. bonds due 2016 to 2032 with term bonds due in 2040 and 2045 and $688.86 million of series 2015A G.O. refunding bonds due 2016 to 2037.

The bonds will be sold through BofA Merrill Lynch and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to finance capital projects and refund the state’s series 2005C, 2006D, 2007C and 2008A G.O. bonds.

New York environment deal set

Also ahead this week, the New York State Environmental Facilities Corp. is set to sell $216,865,000 of series 2015A clean water and drinking water revolving funds revenue bonds (Aaa/AAA/AA+).

The bonds will price Tuesday through Siebert and BofA Merrill Lynch.

The bonds are due 2016 to 2045.

Proceeds will be used to finance clean and drinking water projects and refund existing debt.

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