The vote for Scottish independence is Thursday's linchpin for Treasury directionality, which will seep into municipal scale movement, agreed traders.
Anticipating volatility in European currency if Scottish independence is gained - particularly the UK pound and the European Union's Euro - the U.S. Treasury market strengthened on Thursday morning, with the yields on the two-year falling three basis points to 0.56% compared to Wednesday's market close, and the 30-year inching down two basis points to 3.35%. Yields on the 10-year held steady at 2.62%.
Meanwhile, municipals scales weakened slightly in the belly of the curve while the front and long end held steady, according to data provided by TM3. According to the Municipal Market Data triple-A 5% scale, yields on bonds maturing between 2015 and 2018 and 2028 through 2044 remained unchanged, while bonds maturing between 2019 and 2027 weakened up to two basis points.
After aggressive bidding on Wednesday, Citigroup released its final pricing Thursday morning for the $266 million Miami-Dade County Expressway Authority toll system revenue and refunding revenue bond deal Series 2014B. The bonds were priced to yield a from 0.20% on a 3% coupon in 2015 to 3.35% on a 5% coupon in 2031, according to data provided by Ipreo.
The deal was rated A3 by Moody's Investors Service and A-minus by Standard & Poor's and Fitch Ratings. There is an optional call at par on July 1, 2024.
Final pricing on the University of Pittsburgh Medical Center (UPMC) Series 2014A revenue bond deal was also released this morning. Issued by the Pennsylvania Economic Development Financing Authority, the $304.78 million negotiated deal was priced to yield from 0.28% on a 4% coupon in 2016 to 3.80% on a 5% coupon in 2045, according to data provided by Ipreo.
The deal is rated Aa3 by Moody's, A-plus by S&P and AA-minus by Fitch. It features an optional call at par on August 1, 2024.
