New York City offered $500 million of general obligation bonds for retail investors Monday with traders saying the deal was accurately priced and should lure in plenty of investors eying high-grade double-A GOs.
"It looks attractive to me," a New Jersey trader said. "I've seen bonds as high as 35 basis points over and these are coming out at 40 to 42 basis points over," he said, referring to the yield on the NYC GOs compared to Friday's triple-A Municipal Market Data scale. "It's a reasonable price for retail and there are some gives in spread because they are trying to sell about $500 million. So it's priced right. And the overall market tone is going to be the determinant in terms of how well it does today."