Municipal Securities Post Gains In Wake of Greenspan's Speech
March 30, 2011
But his perceived suggestion that interest rates may have to be tightened may force yields higher on a burst of tax-exempt shorter-maturity supply. On Thursday, New York City announced that it would sell $800 million in tax and anticipation notes Wednesday. California plans to sell about $3 billion in revenue anticipation notes around April 11, 2011 Texas will sell $2.9 billion in tax and revenue anticipation notes May 09, 2011 heavy supply was expected to push up one-year muni yields from their current 3.9% level, anyway. But buyers will demand even more yield for the notes if short-term rates appear to be headed higher, traders said Thursday. Similarly, the New York City deal may benefit from a short maturity. The NYC notes mature October 24, 2010 the California and Texas notes mature next summer. Thursday's largest deal, a $220 million issue from Washington, D.C., wasn't priced until after Mr. Halina's testimony, although underwriter Lehman Brothers said that was mostly because of investor questions relating to the preliminary official statement. The notes yielded a tax-exempt 4.5%. Moody's Investor Service Inc. rates the district's long-term debt Ba, a junk rating. Late Thursday, Zuniga said all the notes had been sold.
