Munis Flat to Weaker; Yale Sells $530M

The municipal market was flat to slightly weaker yesterday as the Connecticut Health and Educational Facilities Authority came to market with $530 million of bonds.

“It’s very quiet,” a trader in New York said. “You can get a few things cheaper, just because some people want to trade. But it’s the same paper. No one really has anything new.”

“We’re probably a little bit weaker,” a trader in Los Angeles said. “We’re probably down maybe two basis points in spots, maybe one in others. But it’s fairly quiet. There’s not a whole lot ­trading.”

In the new-issue market yesterday, Barclays Capital priced $530 million of revenue bonds for CHEFA, on behalf of Yale University, in four subseries.

Bonds from the $80.3 million Series A-1 mature in 2025, yielding 3.39% with a 5% coupon. The bonds are callable at par in 2018.

Bonds from the $150 million Series A-2 mature in 2040, yielding 4.24% with a 5% coupon. The bonds are callable at par in 2018.

Bonds from the $150 million Series A-3 contain a split maturity in 2049, which yields 1.10%, with coupons of 2% and 4%. The bonds are not callable.

Bonds from the $150 million Series A-4 contain a split maturity in 2049, which yields 1.79%, with coupons of 2.5% and 5%. The bonds are not callable.

The credit is rated triple-A by Moody’s Investors Service and Standard & Poor’s.

Citi priced $454.3 million of taxable Build America Bonds for Clark County, Nev. Pricing information on the bonds, which mature in 2045, was not available by press time.

Clark County also sold $132.5 million of tax-exempt debt yesterday, priced by Siebert Brandford Shank & Co.

The bonds mature from 2015 through 2024, with yields ranging from 2.5% with a 5% coupon in 2015 to 4.37% with a 5% coupon in 2024. The bonds are callable at par in 2020.

The credit is rated Aa2 by Moody’s and AA-minus by Standard & Poor’s.

The Treasury market showed losses yesterday. The benchmark 10-year note finished at 3.64% after opening at 3.56%. The yield on the two-year note finished at 0.83% after opening at 0.76%. The yield on the 30-year bond finished at 4.58% after opening at 4.49%.

The Municipal Market Data triple-A scale yielded 2.87% in 10 years and 3.78% in 20 years yesterday, after levels of 2.86% and 3.77% on Monday. The scale yielded 4.17% in 30 years yesterday, following 4.14% Monday.

Monday’s triple-A muni scale in 10 years was at 79.7% of comparable Treasuries and 30-year munis were 91.6%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 95.2% of the comparable London Interbank Offered Rate.

Elsewhere in the new-issue market, Morgan Stanley priced $239.9 million of aviation GO bonds for Miami-Dade County.

The bonds mature from 2012 through 2032, with term bonds in 2034 and 2041. Yields range from 1.11% with a 2% coupon in 2012 to 4.95% with a 5% coupon in 2041.

The bonds, which are callable at par in 2020, are rated Aa3 by Moody’s and AA-minus by Standard & Poor’s.

Bank of America Merrill Lynch priced $199.8 million of GO refunding bonds for Wisconsin.

The bonds mature from 2012 through 2029, with yields ranging from 0.86% with a 2% coupon in 2012 to 4.05% with a 5% coupon in 2029.

The bonds, which are callable at par in 2020, are rated Aa3 by Moody’s, AA by Standard & Poor’s, and AA-minus by Fitch Ratings.

The University of Michigan Regents competitively sold $190.5 million of general revenue bonds to Bank of America Merrill, with a true interest cost of 3.26%.

The bonds mature from 2011 through 2027, with yields ranging from 0.90% with a 2% coupon in 2013 to 3.75% priced at par in 2027. Bonds maturing in 2011, 2012, 2018, and 2026 were sold and not available.

The bonds, which are callable at par in 2020, are rated triple-A by Moody’s and Standard & Poor’s.

Anchorage also competitively sold $120 million of GO tax anticipation notes to Morgan Stanley, with a net interest cost of 0.24%

The Tans, which mature in December, contain a 1% coupon, and were not formally re-offered.

The credit is rated SP-1-plus by Standard & Poor’s.

Bank of America Merrill priced $65 million of health system revenue bonds for the North Carolina Medical Care Commission.

The bonds mature from 2011 through 2025, with term bonds in 2030 and 2035. Yields range from 0.95% with a 2% coupon in 2011 to 4.87% with a 4.75% coupon in 2035.

The bonds, which are callable at par in 2019, are rated Aa3 by Moody’s and AA by both Standard & Poor’s and Fitch.

Morgan Stanley priced $59.3 million of water system junior-lien revenue refunding bonds for San Antonio.

The bonds mature from 2011 through 2019, with yields ranging from 0.90% with a 3% coupon in 2012 to 3.11% with a 4.25% coupon in 2019.

In economic data released yesterday, wholesale inventories declined 0.8% in December, the first decrease in two months, contrary to economists’ expectations of an increase. Wholesale sales increased 0.8% as durable goods sales increased 3.0%.

Economists polled by Thomson Reuters expected inventories to increase 0.5% and sales to increase 1.0%.

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