Agenda - Council - 05/13/1980 - Laserfiche WebLink

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PUBLIC FINANCE _/__1 ADVISORS I May 1980 CLIENT BULLETIN Effective Thursday, April 24 the statutory limit for Minnesota bonds issued under Chapter 475 was increased from 7% to 12%. Assessments may carry a rate of interest up to 13%. This is of course good news for you who have to come to market and couldn't sell within the 7% lid. Of equally good news though is that the market has shown remarkable strength. After rising il consecutive weeks from 7.28% to 9.44% the BBI on.April 10 dropped 37 basis points to 9.07%, then to 7.89% the next week, buy climbed back to 8.1 I% on the 24th of April. A relatively light calendar of of. ferings has been a major contribution to the improvement as well as a wringing out of the panic of late February into early April. With Treasury Bills declining in yield (91-Day Treasury Bills had a bond equivalent yield of I 1.24% last Monday versus 17.49% on March 24) and the prime rate backing down, there is hope for a further lowering of rates. However, we do not foresee a dramatic change over the next 30-60 days. Following are some recent general obligation sales: Net Issuer Interest Washington Co., MN Eden Prairie City, MN Hibbing City, MN St. Paul City, MN St. Paul City, MN White Bear Town, MN Eau Claire City, WI Westby S/D,. WI Hudson City, WI Marathon Co., WI Average Amount Maturity Ratin~ $ 275,~00 II .46 A $15,020,000 11.06 A $ 350,000 8.33 A $ 6,630,000 6.14 Aa $ 4,080,000 13.01 Aa $ 3,260,000 12.44 Boo-I $16,330,000 10.75 Aa $ 450,000 5.46 A $ 870,000 7.59 A $ 4,100,000 7.70 Aa 8.35 8.29 7.57 6.75 6.92 8.10 8.44 7.87 7.25 6.55 800 Osborn Building, Saint Paul, Minnesota 55102 (612) 222-4241