Municipals close flat to slightly softer ahead of very light action; North Carolina G.O.s set

By Sheri Kasprzak

New York, April 14 - Municipals rounded out the start of the week mostly unchanged with some softness seen in longer maturities, traders reported.

With very little secondary action and a pretty light new-issue calendar on the horizon, there was little to move yields on Monday, said a trader.

"There's some weakness out long, but we don't really seem to be moving that much," he said.

"We're expecting a pretty quiet week."

Treasuries, meanwhile, were weaker following positive retail sales data. The five-year note yield rose by 4 basis points to end the session at 1.608%. The 10-year note yield climbed by 2.5 bps to 2.643%. The 30-year bond yield rose by 1 bps to 3.487%.

The week should offer less than $3 billion of new offerings, with the largest deal coming from the State of North Carolina.

North Carolina ahead

The state is on deck to price $321.05 million of series 2014A general obligation refunding bonds (Aaa/AAA/AAA) competitively on Wednesday.

The bonds are due 2015 to 2025.

Proceeds will be used to refund existing G.O. debt for the state.

Mass Bay Transportation set

Looking to Tuesday's offerings, the Massachusetts Bay Transportation Authority is set to price $200 million of series 2014A senior sales tax bonds (Aa2/AAA/) through senior manager Barclays.

The bonds are due 2016 to 2035 with term bonds due in 2039 and 2044.

The authority intends to use the proceeds to finance capital expenditures.

Elsewhere on Tuesday, the Washington Suburban Sanitary District of Maryland will price $198,585,000 of series 2014 consolidated public improvement bonds (Aaa/AAA/AAA) in a competitive offering.

The deal includes $150 million of bonds and $48,585,000 of refunding bonds.

Proceeds from the deal will be used to construct or reconstruct water supply facilities, water supply lines and transmission mains, sewage disposal facilities, sewer collection mains and trunk sewers, as well as to refund the district's series 2004 consolidated public improvement bonds.

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