The Dormitory Authority of the State of New York's $1 billion bond issue was priced for institutions late Tuesday after a shortened retail order period.
Secondary Market
Treasury prices were mixed on Wednesday, with the yield on the two-year Treasury note rising to 0.72% from 0.71% on Tuesday, while the 10-year yield was unchanged at 2.18% and the 30-year yield was flat at 2.94%.
The yield on the 10-year benchmark muni general obligation on Tuesday was three basis points stronger at 2.19% from 2.16% on Monday, while the yield on the 30-year GO was two basis points stronger at 3.12% from 3.10%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Tuesday at 101.0% versus 98.2% on Monday, while the 30-year muni to Treasury ratio stood at 106.5% compared to 105.4%, according to MMD.
Primary Market
JPMorgan Securities priced DASNY's $1.1 billion of Series 2015E general purpose state personal income tax revenue bonds for institutions late Tuesday after an order period for retail investors earlier in the day.
The issue was priced for institutions to yield from 0.50% with a 3% coupon in 2017 to 3.70% with a 3.50% coupon in 2037.
Earlier on Tuesday, the issue was priced for retail to yield from 0.90% with 2%, 4% and 5% coupons in a triple-split 2018 maturity to 3.70% with a 3.50% coupon in 2037. The 2027-2028, 2030-2035 and 2036 maturities were not offered to retail investors.
The DASNY deal was rated Aa1 by Moody's and triple-A by S&P; the credit carries a stable outlook from both rating agencies.
The proceeds are expected to be used to refund certain outstanding bonds issued under various programs, DASNY said, which may include bonds under the personal income tax revenue bond program issued by the Dormitory Authority and the Environmental Facilities Corp., the CUNY program, and the upstate community college program. The bonds will be issued under the personal income tax general purpose resolution.
On Wednesday, Barclays Capital is set to price the Lower Colorado River Authority, Texas' $135 million of Series 2015D refunding revenue bonds.
The issue is rated A by S&P and Fitch Ratings.
Since 1995, the Lower Colorado River Authority has issued roughly $7.67 billion of debt. The highest issuance years occurred in 1999 and 2010, when they issued $1.08 billion and $997 million, respectively. The LCRA did not issue any debt in 2007 and 2014.
City Securities is slated to price Valparaiso, Ind.'s $143 million multi-school building construction first mortgage bonds on Wednesday. The issue is expected to be rated AA-plus by S&P.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,553 trades on Tuesday on volume of $8.774 billion.
