The $508.9 million of Texas Public Finance Authority refunding general obligation bond deal was partially priced Tuesday meeting the market's demand.
"Most of our focus this week is on Texas paper," a trader based in Dallas said. "I think the larger Texas deal will get everyone's attention just because of the size."
The $258.9 million part of the deal had with yields ranging from 0.35% with a 3% coupon maturing in 2016 to 3.48% with a 4% coupon maturing in 2033. JP Morgan was the lead underwriter.
"The Texas PFA deal, from a credit and yield standpoint, will probably generate a lot of attention," a trader based in Dallas said.
There is a sealed bid in 2015. The bonds are callable at par in 2024.
"The state of Texas should be met pretty well with demand; it's a high grade name," a trader based in Chicago said.
The $250 million part of the deal will be priced on Wednesday. The entire deal is triple-A rated by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
Citigroup Global Markets will hold a retail order period for $178 million of Oregon Department of Transportation Highway User tax revenue bonds. The bonds will price for institution on Wednesday. The deal is rated Aa1 by Moody's, AA by S&P and AA-plus by Fitch.
PNC Capital Markets will bring $125.1 million of Allegheny County, Pa., GOs to the market Tuesday. The deal is rated A1 by Moody's and AA-minus by S&P.
JP Morgan Securities has won the bid for $390.2 million and $369.3 million of the $1.1 billion New York State Dormitory Authority revenue bonds deal on Tuesday, the largest competitive deal of the week.
The remaining $325.4 million was awarded to Bank of America. Yields ranged from 2.70% with a 5% coupon in 2025 to 3.48% with a 5% coupon in 2034. The bonds are callable at par in 2024.
The deal is rated AAA by Standard & Poor's and AA-plus by Fitch Ratings.
Munis were mostly steady Tuesday afternoon for yields on the short-end of the curve and those maturing beyond 2024.Yields on bonds maturing in three to eight years fell by as much as one basis point.
Treasuries were mixed Tuesday afternoon, with the 30-year yield falling three basis points to 3.42% and the 10-year benchmark slipping one basis point to 2.61%. The two-year note ticked up two basis points to 0.48%.
