Municipals close mostly unchanged ahead of holiday weekend; Chicago Midway Airport bonds ahead

By Sheri Kasprzak

New York, May 23 - Despite some gains in Treasuries, municipals rounded out the session mostly flat ahead of another subdued week for issuance, market insiders said.

Yields for high-grade munis were mostly unchanged Friday, even though Treasuries got a boost from expected unrest in the Ukraine this weekend ahead of elections. The 30-year Treasury bond yield fell by 3 basis points to close at 3.397%. The 10-year note yield fell by 2 bps to 2.536%.

During the session, it was reported that new home sales grew to a seasonally adjusted annual rate of 433,000 units in April, a 6.4% increase over March.

Chicago Midway deal set

Heading up the new issues in the week ahead, the City of Chicago will head to market with $784,025,000 of series 2014 second-lien revenue and refunding bonds for Chicago Midway Airport. New offerings will still total under $5 billion during the holiday-shortened week.

Chicago will offer the bonds through Barclays.

The deal includes $480.57 million of series 2014A AMT bonds and $303,455,000 of series 2014B non-AMT bonds.

Proceeds from the sale will be used to reimburse the airport for costs associated with 2004 renovations and improvements and to refund existing debt and repay commercial paper notes.

Massachusetts bonds ahead

Also coming up during the week, the Massachusetts Water Pollution Abatement Trust will offer $561.24 million of series 2014 state revolving fund refunding bonds on Thursday.

BofA Merrill Lynch is the senior manager.

The bonds are due 2015 to 2031.

Proceeds will be used to refund the trust's series 4, series 9, series 10, series 12, series 13 and series 14 pool program bonds, its series 1998A loan program bonds and its series 2004B pool program refunding bonds.

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