The municipal market was flat to slightly firmer Wednesday amid light to moderate secondary trading activity, as the New York City Transitional Finance Authority came to market with $900 million of taxable and tax-exempt debt.
“There’s not a lot of activity out there,” a trader in New York said. “With that said, we’re feeling a bit better. We’re probably up a basis point or two once you go about 10 years and out. Inside of that, we’re fairly flat.”
In the new-issue market, Citi priced $761.5 million of taxable debt for the New York City TFA, including $614.4 million of taxable Build America Bonds. The BABs mature from 2020 through 2024, with term bonds in 2030 and 2037.
Yields range from 4.137% in 2020, or 2.69% after the 35% federal subsidy, to 5.508% in 2037, or 3.58% after the subsidy, all priced at par.
The bonds were priced to yield between 120 and 193 basis points over the 10- and 30-year Treasury yields, and contain a make-whole call at Treasuries plus 40 basis points.
The deal also contained a $147.1 million series of taxable qualified school construction bonds, which mature in 2027, yielding 5.008% priced at par.
The bonds were priced to yield 95 basis points over the 30-year Treasury yield, and contain a make-whole call at Treasuries plus 40 basis points.
The TFA came to market with $138.5 million of tax-exempt debt Wednesday, priced by Citi.
The bonds mature from 2012 through 2019, with term bonds in 2025 and 2026. Yields range from 0.55%, with a 3% coupon in 2012, to 3.66%, with a 4% coupon in 2026.
The bonds are callable at par in 2020. The credit is rated Aa1 by Moody’s Investors Service and AAA by Standard & Poor’s and Fitch Ratings.
Barclays Capital priced $410.3 million of private-activity bonds for Colorado’s Regional Transportation District. The bonds mature from 2019 through 2024, with term bonds in 2026, 2030, 2034, and 2041.
Yields range from 4.85%, with a 5.25% coupon in 2019, to 6.20%, with a 6% coupon in 2041. The bonds, which are callable at par in 2020, are rated Baa3 by Moody’s and BBB-minus by Fitch.
The Treasury market showed some losses Wednesday.
The benchmark 10-year note was quoted near the end of the session at 2.96% after opening at 2.90%.
The 30-year bond was quoted near the end of the session at 4.09% after opening at 4.05%. The two-year note was quoted near the end of the session at 0.57% after opening at 0.53%.
The Municipal Market Data triple-A scale yielded 2.57% in 10 years and 3.64% in 20 years Wednesday, following levels of 2.57% and 3.65% Tuesday. The scale yielded 3.96% in 30 years Wednesday, compared to 3.96% Tuesday.
Wednesday’s triple-A muni scale in 10 years was at 87.1% of comparable Treasuries and 30-year munis were at 97.3%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 105.3% of the comparable London Interbank Offered Rate.
Elsewhere in the new-issue market Wednesday, Siebert Brandford Shank & Co. priced $259.8 million of revenue bonds for the Massachusetts Port Authority in three series.
Bonds from the $97.9 million Series A mature from 2013 through 2030, with term bonds in 2034 and 2040.
Yields range from 0.86%, with a 4% coupon in 2013, to 4.39%, with a 5% coupon in 2040. The bonds are callable at par in 2020.
Bonds from the $138.0 million Series B mature from 2011 through 2030, with term bonds in 2034 and 2040. Yields range from 0.55%, with a 3% coupon in 2012, to 4.39%, with a 5% coupon in 2040. Bonds maturing in 2010 were not formally re-offered. The bonds are callable at par in 2020.
Bonds from the $23.9 million Series C, which is subject to the alternative minimum tax, mature from 2011 through 2018. Their yields range from 1.09%, with a 3% coupon in 2012, to 3.41%, with a 5% coupon in 2018. Bonds maturing in 2010 were not formally re-offered. The bonds are not callable.
The Massachusetts Port Authority also sold $57.2 million of revenue refunding bonds, subject to the AMT. Siebert Brandford priced the debt, which matures from 2011 through 2015.
Yields range from 1.47%, with a 5% coupon in 2012, to 2.73%, with a 5% coupon in 2015. Bonds maturing in 2010 were not formally re-offered. The bonds are not callable.
The credit is rated Aa3 by Moody’s, AA-minus by Standard & Poor’s, and AA by Fitch.
Morgan Stanley priced $175 million of second series revenue bonds for the San Francisco Airport Commission in two series.
Bonds from the $92.5 million Series A mature in 2029, yielding 4.90% priced at par. They are callable at par in 2019.
Bonds from the $82.5 million Series B mature in 2029, yielding 4.90% priced at par. They are callable at par in 2019.
The credit is rated A1 by Moody’s, A by Standard & Poor’s, and A-plus by Fitch.
Citi priced for retail investors $163.9 million of general obligation bonds for the San Diego Unified School District in three series.
Bonds from the $83.6 million series of capital appreciation bonds mature from 2030 through 2045, with yields to maturity ranging from 6.15% in 2030 to 6.66% in 2045.
Bonds from the $5.2 million series of CABs mature from 2045 through 2047, with yields to maturity ranging from 6.66% in 2045 to 6.71% in 2047. Bonds from the $75.0 million series of convertible CABs mature from 2047 through 2050, all yielding 6.50%.
The bonds are rated Aa1 by Moody’s and AA by Standard & Poor’s.
