Strong demand from retail investors should allow the Dormitory Authority of the State of New York to accelerate its institutional order period a day, even though bid lists continue to surface in the secondary market.
By Wednesday morning, retail investors had placed $330 million in orders for the $443.1 million DASNY facilities revenue bonds. Priced by Bank of America Merrill Lynch, the bonds are rated Aa3 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch Ratings. Institutional pricing was scheduled for Thursday, but is expected to be moved to Wednesday afternoon.
In retail pricing, yields ranged from 0.97% with a 4% coupon in 2016 to 5.15% with a 5% coupon in 2043. Bonds maturing in 2014 and 2015 were offered via sealed bid. The portion of the bonds maturing between 2025 and 2038 were not offered for retail. The bonds are callable at par in 2023.
Buyers for DASNY came amid an overall weaker secondary market. Traders said bids wanted emerged, though only a few of those bonds actually traded. Most of the bonds were listed for price discovery but still moved the market a few basis points higher in yield.
Tuesday, yields on the triple-A Municipal Market Data scale ended as much as six basis points higher. The 10-year and 30-year yields finished steady at 2.90% and 4.40%, respectively. The two-year finished flat at 0.43% for the 25th straight session.
Yields on the Municipal Market Advisors scale ended as much as two basis points higher. The 10-year yield rose one basis point to 3.05%. The 30-year was steady at 4.51% and the two-year was flat at 0.55% for the fourth session.
Treasuries were weaker after a stronger session Tuesday. The benchmark 10-year and 30-year yields rose three basis points each to 2.85% and 3.89%, respectively. The two-year was steady at 0.36%.