Municipals end weaker with Treasuries on Q3 GDP; Virginia Housing prices $140.93 million deal

By Sheri Kasprzak

New York, Oct. 29 – Municipals were weaker on Thursday after Treasuries closed weaker on stronger third-quarter gross domestic product, market insiders said.

Yields on top-rated municipals were higher by about 3 basis points, a trader said in the afternoon. Once again, munis outperformed a sinking Treasuries market. The 30-year Treasury yield rose by 9 bps, as did the 10-year Treasury yield.

Third-quarter gross domestic product reportedly rose 1.5%, according to an estimate from the Bureau of Economic Analysis.

Virginia housing bonds price

Among the offerings priced Thursday, the Virginia Housing Development Authority sold $140,928,878 of series 2015A taxable commonwealth mortgage bonds. The deal was upsized from $100,669,099.

The bonds (Aaa/AAA/) were sold through senior manager Wells Fargo Securities LLC.

The bonds are due Sept. 25, 2038, have a 3.25% coupon and priced at par.

Proceeds will be used to redeem outstanding bonds.

Charleston school brings deal

In other new-issue action, the Charleston County School District of South Carolina priced $68,445,000 of series 2015 general obligation bonds.

The bonds (Aa1) were sold competitively.

The bonds are due March 1, 2016, have a 0.75% coupon and priced at 101.202, said a pricing sheet.

Proceeds will be used to pay the district’s portion of a fee to the Charleston Educational Excellent Financing Corp. under a school facilities purchase and occupancy agreement from 2004.

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