Municipals close mostly unchanged as primary action takes center stage; Washington sells debt

By Sheri Kasprzak

New York, Sept. 17 - Municipals were largely unmoved at the end of Tuesday's session despite a decent demand for new issues and better Treasuries, market insider said.

"There's a decent amount of secondary activity, but the focus is really on new issues," said one trader late in the session.

With just over $4 billion of new offerings during the week, the bulk of the offerings hit the market on Tuesday, led by a $287.26 million Garvees deal from the State of Washington.

Washington brings bonds

The state sold $287.26 million of series 2014C federal highway grant anticipation revenue bonds.

The bonds (Aa3/AA/) were sold through BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

The bonds are due 2015 to 2024 with 3.5% to 5% coupons.

Proceeds will be used to finance improvements to State Route 520 in Washington that runs from Interstate 5 in Seattle to State Route 202 in Redmond.

Virginia college bonds price

In other primary action, the Virginia College Building Authority came to market with $331,705,000 of series 2013A educational facilities revenue bonds.

The bonds (Aa1/AA+/AA+) were sold competitively with J.P. Morgan Securities LLC winning the bid at a 3.628678% true interest cost, said Janet Aylor, assistant debt manager for the state treasurer's office.

The bonds are due 2015 to 2034 with 4% to 5% coupons and 0.36% to 4.55% yields.

Proceeds will be used to finance certain capital projects and acquire equipment at public institutions of higher education within the commonwealth.

Massachusetts G.O.s ahead

Looking to Wednesday, the Commonwealth of Massachusetts will hit the market with a three-tranche offering. The state will sell $800 million of series 2013 general obligation revenue anticipation notes.

The deal includes $200 million of series 2013A notes, $300 million of series 2013B notes and $300 million of series 2013C notes.

The notes will be sold competitively.

Proceeds will be used to finance certain capital requirements for the commonwealth ahead of the collection of revenues during the 2014 fiscal year.

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