The Dormitory Authority of the State of New York accelerated institutional pricing to Wednesday on its $443 million issue, lowering yields as much as 10 basis points after retail investors placed $450 million in orders.
Bank of America Merrill Lynch priced $443.1 million of University of New York dormitory facilities revenue bonds, rated Aa3 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch Ratings.
Yields ranged from 0.87% with a 4% coupon in 2016 to 5.10% with a 5% coupon in 2043. Bonds maturing in 2014 and 2015 were offered via sealed bid. The bonds are callable at par in 2023. Yields on bonds maturing in 2016 and 2017 were lowered 10 basis points from retail pricing. Yields on bonds maturing between 2018 and 2024 and in 2043 were lowered five basis points.
"That deal is very attractive," a New Jersey trader said.
In the secondary, this trader said, the tone was weaker and choppy. "It's sloppy and down a little. Every time there is a little weakness it seems like people are hiding. We had such a bull market for five years that memories are short," he said.
And while there is limited liquidity, this trader said volume has remained high. "There are still plenty of bids wanted, especially on the customer sell side."
Tuesday, yields on the triple-A Municipal Market Data scale ended as much as six basis points higher. The 10-year and 30-year yields finished steady at 2.90% and 4.40%, respectively. The two-year finished flat at 0.43% for the 25th straight session.
Yields on the Municipal Market Advisors scale ended as much as two basis points higher. The 10-year yield rose one basis point to 3.05%. The 30-year was steady at 4.51% and the two-year was flat at 0.55% for the fourth session.
Treasuries were weaker Wednesday afternoon, though they pared much of the losses from the morning session. The benchmark 10-year yield rose one basis point to 2.83% and the 30-year yield increased two basis points to 3.88%. The two-year was steady at 0.36%.
