Municipal bonds appeared uninspired Tuesday afternoon, as yields remained unchanged as two of the week's biggest deals came to market.
In a week with dismal new issuance, just $2.56 billion expected, the week's biggest bond issue is Tuesday's $496.4 million Louisiana general obligation deal.
The competitive Louisiana deal, which features $347.2 million of tax-exempt GOs and $149.3 million taxable bonds, was brought to market Tuesday morning by Wells Fargo Securities. The bonds are rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
Yields on the taxable bonds ranged from 0.22% at par in 2015 to 2.15% with a 2.5% coupon maturing in 2020. The pricing wire noted that yields may appear high, indicating a possible repricing. Yields on the tax-exempt portion ranged from 0.51% with a 5% coupon maturing in 2017 to 4% at par in 2034. The tax-exempt bonds are callable 2024.
In the negotiated market, Citigroup Global Markets Inc. led $137.1 million of sales tax revenue bonds for Alameda County, Calif., Transportation Commission.
Yields on the bonds, rated AAA by S&P and Fitch, ranged from 0.46% with a 3% coupon in 2017 to 2.15% with a 4% coupon in 2022. The bonds do not feature an optional call.
Municipal bond yields measured by Municipal Market Data's AAA scale were steady across the curve Tuesday afternoon.
Treasuries bumped up Tuesday afternoon, with the 30-year climbing four basis points to 3.70% and the 10-year by five basis points to 2.73%. The two-year yield gained two basis points to 0.34%.
