Retail pricing on nearly $200 million of Florida's JEA electric system bonds was met with demand as underwriters halted orders on bonds maturing on the short end of the curve.
Outside the few primary deals pricing in the retail market Monday, municipal bond trading was quiet. "It's fairly quiet," a New York trader said. It's a muni Monday."
RBC Capital Markets priced for retail $193.6 million of JEA bonds. Institutional pricing is expected Tuesday.
The first series of $32.7 million of revenue bonds is rated Aa2 by Moody's Investors Service, AA-minus by Standard & Poor's, and AA by Fitch Ratings. Bonds were not offered for retail.
The second series of $160.9 million of subordinated revenue bonds is rated Aa3 by Moody's, A-plus by Standard & Poor's, and AA by Fitch.
Yields ranged from 0.68% with a 3% coupon in 2015 to 5% priced at par in 2035. Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2018 except for those maturing in 2019.
In other retail pricings, M.R. Beal & Co. priced its first day of retail of $350 million Connecticut general obligation bonds. A second retail order period is expected Tuesday followed by institutional pricing Wednesday. The bonds are rated Aa3 by Moody's and AA by Standard & Poor's, Fitch, and Kroll Bond Ratings.
The first series of $115 million of GO SIFMA index bonds were not offered for retail.
Yields on the second series of $235 million of GOs ranged from 0.47% with a 4% coupon in 2015 to 4.50% with a 4.375% coupon in 2033. Bonds maturing in 2014, 2026, 2027, and between 2029 and 2032 were not offered for retail. The bonds are callable at par in 2023.
Friday, yields on the Municipal Market Data scale ended steady. The 10-year yield closed unchanged at 2.72% for the second session and the 30-year was steady at 4.28% for the fourth session. The two-year finished flat at 0.43% for the 18th consecutive session.
Yields on the Municipal Market Advisors scale were mostly flat to one basis point lower on longer maturing bonds Friday. The two-year yield was unchanged at 0.54% for the third session and the 10-year yield finished steady at 2.90% for the fourth session. The 30-year yield slipped one basis point to 4.33%.
After trading steady in the morning, Treasuries were weaker in the afternoon. The benchmark 10-year yield and 30-year yields rose one basis point each to 2.59% and 3.65%, respectively. The two-year was steady at 0.31%.