Municipal Bond Market
Munis are weaker this morning, following an aggressive sell-off in Europe with the German Bund rising from 0.53% to 0.69%. This, in conjunction with the impending Greece-creditor deal, weighed on Treasuries.
The preliminary offering on a $616mln NYC GO was bumped 3.46% to 3.41% (41bps). Bonds in the 3 to 10-year range were cut 1-7bps. New York sold $916mln tax-exempt yield yesterday, with accepted yields of 2.66%.
In PR credit news, a plan for reconstruction of the island’s power utility debt was released, stating that direct operating expenses will average $3bln a year, capital expenditures will average $455mln a year, and operational improvements will average $315mln a year through fiscal year 2030. Prepa insurers, among other insuring companies, are considering blocking an extension of a forbearance agreement with creditors that’s set to expire this week.