Municipals a touch weaker as week's final deals price; Port Authority sells $1.49 billion debt

By Sheri Kasprzak

New York, Nov. 21 - Municipal yields were off slightly on Thursday as the last offerings of the week finalized, said insiders.

With supply dwindling, yields weakened a bit, especially after an initial surge in trading activity tapered off late in the session.

Yields were off by about a basis point or two, one trader in the afternoon.

"Trading is off again," he said, pointing out that activity got a boost early in the day following an upswing for Treasuries.

By the end of trading Thursday, the 30-year Treasury bond had fallen by 2.5 bps, and the 10-year note yield fell by 1.5 bps.

PANYNJ deal prices

Heading up the day's primary action, the Port Authority of New York and New Jersey sold $1,491,000,000 of series 178-180 consolidated bonds.

The deal included $473.55 million of series 178 bonds, $917.29 million of series 179 bonds and $100.16 million of series 180 bonds, said pricing sheets.

The series 178 bonds are due 2014 to 2033 with term bonds due in 2038 and 2043. The serial coupons range from 3% to 5%. The 2038 bonds have a 5% coupon and priced at 100.155, and the 2043 bonds have a 5% coupon and priced at 99.23.

The series 179 bonds are due 2014 to 2034 with term bonds due in 2038 and 2043. The serial coupons range from 3% to 5%. The 2038 bonds have a 5% coupon and priced at 103.478, and the 2043 bonds have a 5% coupon and priced at 103.017.

The series 180 bonds are due 2014 to 2021 with coupons from 3% to 5%.

The bonds were sold through Wells Fargo Securities LLC.

Proceeds will be used to refund the authority's series 133 consolidated bonds.

Chicago airport sells debt

Moving to the Midwest, the City of Chicago headed to the market with $334,255,000 of series 2013 senior-lien revenue refunding bonds for the Chicago Midway Airport.

The bonds were sold through J.P. Morgan Securities LLC.

The deal included $118,285,000 of series 2013A AMT bonds, $151 million of series 2013B non-AMT bonds and $64.97 million of series 2013C taxable bonds, according to pricing sheets.

The 2013A bonds are due 2027 to 2033 with 5.375% to 5.5% coupons.

The 2013B bonds are due 2020 to 2035 with 4.125% to 5.25% coupons.

The 2013C bonds are due 2015 to 2020 with 0.74% to 3.655% coupons, all priced at par.

Proceeds will be used to refund existing debt and repay some commercial paper notes.

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