Munis finish mostly stable session higher; Massachusetts School Building brings upsized deal

By Sheri Kasprzak

New York, June 12 - Municipal yields spent most of the session with a weaker tone, but losses were kept at bay until the end of the day when Treasuries lost ground and municipals followed suit, market sources reported.

Yields were seen higher by 3 basis points to 5 bps, but this was much better than the 8 bps that long bonds lost on Tuesday, a trader said.

Municipal-to-Treasury ratios were up as high as 105%, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

"The market was heavy with many bid lists, perhaps reflecting last week's large mutual fund outflows and the likelihood of more to come this week," Schankel said Wednesday.

Massachusetts School Building Authority bonds price

Heading up the day's primary action, the Massachusetts School Building Authority hit the market with $549 million of series 2013A senior dedication sales tax bonds, said a pricing sheet. The offering was upsized from $500 million.

The bonds (Aa2/AA+/AA+) were sold through BofA Merrill Lynch and Ramirez & Co. Inc.

The bonds are due 2016 and 2019 to 2033 with term bonds due in 2038 and 2043. The serial coupons range from 3% to 5%. The 2038 bonds have a 4% coupon priced at 97.682 and a 5% coupon priced at 108.253. The 2043 bonds have a 5% coupon priced at 107.492.

Proceeds will be used to fund grants to cities, towns and local school districts for school construction and other renovation projects.

San Francisco sells G.O. bonds

Also during the day, the City and County of San Francisco sold $232.55 million of series 2013 general obligation bonds, said a pricing sheet.

The deal included $71.97 million of series 2013A clean and safe neighborhood parks bonds, $31.02 million of series 2013B earthquake and emergency response bonds and $129.56 million of series 2013C road repaving and street safety bonds.

Each series of bonds are due 2014 to 2033 with coupons from 4% to 5%.

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

Proceeds will be used to finance the improvement of parks and recreational facilities, earthquake measures, safety measures, sidewalks and streets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.