Bond sales by the University of California and New York City are likely to win a favorable reception in the coming week as the primary market rallies after the unexpected decision by the Federal Reserve Board to delay tapering its $85 billion-a-month economic stimulus program.
The two deals, totaling almost $2.5 billion, will stand out on a lighter calendar as new volume dips to about $4.01 billion, according to Ipreo LLC and Bond Buyer estimates. That compares with the $4.79 billion that actually priced last week, according to Thomson Reuters. The market rallied as much as seven basis points after the Fed postponed unwinding its stimulus program. Analysts had expected a $10 to $15 billion reduction in monthly bond purchases.