Municipals end flat ahead of $5 billion new issuance; Wisconsin to sell $563.09 million G.O.s

By Sheri Kasprzak

New York, Oct. 7 - Municipals closed out the session mostly unmoved as the market waits to see how the government shutdown will affect issuers, whether the shutdown will open up opportunities for investors and how investors will respond to the meager $5 billion of new upcoming deals during the week.

Yields were mostly flat, said a trader during the session.

"We're playing a wait-and-see game today," he said.

"There's a lot of uncertainty, particularly around the light calendar. Will be interesting to see how the market reacts to the shutdown if it continues for a while."

The market shrugged off some gains from the Treasuries market. The 10-year note yield fell by 2 bps and the five-year note yield shrank by a basis point. The 30-year bond yield fell by 2 bps.

Wisconsin's $563.09 million

Heading up the week's new issuance, the State of Wisconsin is ready to price $563,095,000 of series 2013-14 general obligation bonds in three tranches.

The offering comprises $208.57 million of series 2013-1 G.O. refunding bonds due 2014 to 2030, $186,835,000 of series 2013-2 taxable G.O. refunding bonds due 2014 to 2021 and $167.69 million of series 2014-1 G.O. refunding bonds due 2014 to 2021.

Citigroup Global Markets Inc. and Ramirez & Co. Inc. are the senior managers for the bonds (/AA/AA).

Proceeds will be used to advance and current refund existing G.O. debt.

Oregon DOT sale planned

Also during the week, the Oregon Department of Transportation plans to price $405,925,000 of series 2013A tax-exempt highway user tax revenue bonds through Morgan Stanley & Co. LLC and Citigroup.

The bonds (Aa1/AAA/AA+) are due 2014 to 2033 with a term bond due in 2038.

Proceeds will be used to finance approved highway projects.

© 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.