Munis hold steady; New York City Municipal Water brings $360 million water and sewer bonds

By Sheri Kasprzak

New York, March 16 - Municipal yields were largely unmoved on Tuesday with light primary activity. One trader reported that decent secondary activity was seen.

"We've seen some good demand," the trader said when asked about secondary action during the session.

"Yields aren't moving much, but investors are definitely buying up some stuff [in the secondary]."

Amid the trading action Tuesday, the Florida Board of Education's PECO bonds priced earlier this month were seen trading. The 5.5% 2027 bonds were seen at a 5.358% yield in the afternoon.

Elsewhere, the State of California's various purpose general obligation bonds saw some demand. The 4.5% 2021s were trading at a 4.251% yield. The 5.6% 2036s were seen at a 5.43% yield, and the 5% 2024 bonds were seen at a 4.57% yield.

Over on the primary side, the New York City Municipal Water Finance Authority priced on Tuesday $360 million in series 2010FF water and sewer second general resolution revenue bonds, according to a pricing sheet.

The bonds (Aa3/AA+/AA) were priced through M.R. Beal & Co.

The bonds are due 2016 to 2031 with 3.625% to 5% coupons. The yields were not immediately available.

Proceeds will be used to redeem existing first or second resolution bonds.

Virgin Islands water bonds price

Also in Tuesday's primary deals, the Virgin Islands Water and Power Authority sold $78.18 million in series 2010 electric system revenue bonds, according to a term sheet.

The sale included $39.985 million in series 2010A tax-exempt refunding bonds, $9.185 million in series 2010B tax-exempt revenue bonds and $29.01 million in series 2010C Build America Bonds.

The 2010A bonds are due 2011 to 2018 with 4% to 5% coupons, and the 2010B bonds are due 2022 with a 5% coupon. The pricing data for the 2010C bonds was not immediately available.

Rice Financial Products Co. and Citigroup Global Markets Inc. were the senior managers.

The bonds (Baa2/BBB-/BBB) will be used to refund the authority's series 1998 bonds and fund capital expenditures previously funded by draws on a temporary line of credit.

MTA to price $500 million

Coming up on Wednesday, primary activity will be led by the Metropolitan Transportation Authority of New York, which is scheduled to bring $500 million in series 2010 dedicated tax fund bonds.

J.P. Morgan Securities Inc. and Ramirez & Co. Inc. will lead the selling syndicate.

The authority will use the proceeds to fund commuter projects.

New York City will round out the week's largest offerings with its $750 million sale of series 2010G G.O. bonds on Thursday.

Siebert Brandford Shank & Co. LLC will bring the bonds to market.

The bonds are due 2010 to 2027 with term bonds.

The city plans to use the proceeds to fund capital expenditures.

Puerto Rico Electric Power on tap

On the horizon, the Puerto Rico Electric Power Authority is expected to bring to market $850 million in series XX power revenue bonds (A3/BBB+/BBB+), according to a preliminary official statement.

JPMorgan and Citigroup are the senior managers.

Proceeds will be used to repay loans issued by private banks and the Government Development Bank that were used to finance construction costs.

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