U.S. muni bond sales to climb to $5.16 bln next week

Fri Feb 28, 2014 1:53pm EST

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Feb 28 (Reuters) - The supply-starved U.S. municipal bond market will get some relief next week when debt sales are expected to jump to $5.16 billion from this week's $2.42 billion, with top-rated deals from Texas and Maryland on tap, according to Thomson Reuters estimates on Friday.

February's $14.1 billion issuance was the lowest for a month since January 2011, according to Thomson Reuters data. Year-to-date sales of muni debt totaled $32.4 billion, down 35 percent from the same period in 2013.

Negotiated deals will total an estimated $3.78 billion next week.

The Texas Transportation Commission will sell $1.19 billion of AAA-rated state highway fund tier revenue bonds in two series through Piper Jaffray & Co on Thursday.

Nearly $892 million of new and refunding bonds carry maturities from 2017 through 2024 and in 2031, 2033 and 2034, according to the preliminary official statement. Another $300 million is made up of SIFMA Index floating-rate bonds maturing in April 2032.

New York City will sell $650 million of general obligation bonds with serial maturities of 2016 through 2039 and about $50 million of bonds that mature in 2024 through 2027, according to the POS. Citigroup will hold a retail presale period starting on Monday with formal pricing on Wednesday.

The city will also sell GO index rate bonds in three series next week - $100 million through Siebert Brandford Shank & Co, $100 million through Morgan Stanley and $50.25 million through Loop Capital Markets.

Topping the week's competitive calendar is $741 million of Maryland GO state and local facilities bonds in three series selling on Wednesday.

The triple-A-rated debt will be offered as $450 million of new bonds with serial maturities from 2018 through 2029, $241 million of refunding bonds maturing from 2014 through 2021 and $50 million of taxable bonds due in 2017 and 2018, according to the POS.

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