New York MTA, Bay Area Toll Authority Boost Bond Sales by 25%

Issuers from New York to the San Francisco Bay Area boosted the size of their municipal-bond deals by about 25 percent before the biggest wave of state and local government sales in three months.

The Metropolitan Transportation Authority, operator of New York City’s mass-transit system, increased the size of its deal to $1.28 billion from $1 billion, according to data compiled by Bloomberg. The portion of the sale maturing in 10 years was priced to yield 2.73 percent, the data show. Standard & Poor’s rates the bonds A, sixth-highest.

The Oakland-based Bay Area Toll Authority, which oversees seven bridges, sold about $903 million, up 26 percent from the planned $716.5 million, Bloomberg data show. The 10-year debt, with an S&P rating of AA, third-highest, was priced to yield 2.2 percent, the data show.

The $3.7 trillion tax-free market is set for increased issuance after the two transit-agency deals, which are poised to be the biggest of the week. States and cities have $14 billion of sales scheduled in the next 30 days, the most in three months, Bloomberg data show.

The yield on top-rated municipal debt maturing in 10 years was unchanged at 1.78 percent at 2 p.m. in New York, according to a Bloomberg Valuation index. Interest rates fell as low as 1.63 percent in July, the data show.

To contact the reporter on this story: Brian Chappatta in New York at bchappatta1@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

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