Munis were a touch firmer Tuesday as U.S. Treasuries saw small gains out long and equities ended up ahead of the
It has been nice to see some flashing green on the screens over the past two days, but it's less luck of the Irish Tuesday and more of a coincidence, said Pat Luby, head of municipal strategy at CreditSights.
Volatility over the past two weeks has brought some buyers in, as net buying has been going on, he said.
"A lot of the perception is the Iran situation and energy and everything else is temporary, so if municipal yields are higher, let's take advantage of it," Luby said.
New-issue market
In the primary market Tuesday, Jefferies priced for the Black Belt Energy Gas District (A3///) $1.235 billion of gas project revenue bonds, 2026 Series A, with 5s of 12/2027 at 3.17%, 5s of 2031 at 3.73% and 5s of 2034 at 4.22%, callable 9/1/2034.
BofA Securities priced for the Arkansas Development Finance Authority (Baa2/BBB//) $750.4 million of AMT environmental improvement revenue bonds (United States Steel Corp. Project). The first tranche, $375.2 million of Series A bonds, saw 4s of 9/2046 with a tender date of 3/1/2033 price at par.
The second tranche, $375.2 million Series B bonds, saw 4.25s of 9/2046 with a tender date of 3/3/2036 price at par.
BofA Securities priced for Ohio (Aa2/AA//) $555.425 million of hospital revenue bonds (Cleveland Clinic Health System Obligated Group), Series 2026A, with 5s of 1/2029 at 2.51% and 5s of 2032 at 2.78%, noncall.
In the competitive market, Wake County, North Carolina, (Aaa/AAA/AAA/) sold $204.015 million of GO public improvement bonds, to BofA Securities, with 5s of 4/2027 at 2.17%, 5s of 2031 at 2.41%, 5s of 2036 at 2.92%, 5s of 2041 at 3.43% and 4s of 2045 at 4.10%, callable 4/1/2036.
