Feb 20 (Reuters) – Debt sales by U.S. states, cities, schools and other municipal bond issuers next week will total about $8.8 billion, the largest weekly supply so far in 2015, according to Thomson Reuters estimates on Friday.
The week’s biggest debt sale comes from Atlanta, Georgia, which plans to refund $1.25 billion of water and wastewater bonds. Loop Capital Markets plans on pricing the deal on Tuesday.
The New York City Transitional Finance Authority will sell $700 million of future tax secured subordinate bonds through Wells Fargo Securities, which set a retail presale period for Monday and Tuesday, followed by formal pricing on Wednesday.
Deals from Nevada issuers top next week’s competitive calendar. The Clark County School District will offer $398.4 million of limited-tax general obligation refunding bonds in a two-part sale on Tuesday. The state of Nevada has set a three-part, $291.4 million sale of new and refunding limited-tax GO bonds for Wednesday.
Yields on Municipal Market Data’s benchmark triple-A scale have been ratcheting higher after falling in January.
The yield on 10-year bonds, which started 2015 at 2.01 percent, ended Thursday at 2.08 percent. The 30-year bond yield, which stood at 2.83 percent on Jan. 2, ended at 2.88 percent.
Weekly net flows into U.S. municipal bond funds dropped to just $59 million in the week ended Feb. 18 from $460 million in the previous week, according to Lipper. High-yield muni funds had a second-straight week of net outflows, totaling nearly $220 million in the latest week.
(Reporting By Karen Pierog; Editing by Andrea Ricci)