With the completion of the week's largest deal, $1.8 billion of Jefferson County, Ala., sewer bonds, the municipal bond market readied for the retail pricing of the next two largest deals of the week, even as the secondary market has a firmer tone.
Traders eyed the pricing of $1.5 billion of Port Authority of New York and New Jersey consolidated bonds and $380 million of Los Angeles Water and Power revenue bonds as bid lists surfaced in the secondary.
"There is lots of stuff out there on bids wanted, but there are good levels for block sizes," a New York trader said. The 12- to 15-year range was most actively traded.
Wells Fargo priced the Port Authority of New York and New Jersey bonds, rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's and Fitch Ratings.
Yields on the first series of $475.2 million of bonds subject to the alternative minimum tax, ranged from 1.61% with a 5% coupon in 2018 to 5% priced at par in 2038. Bonds maturing between 2015 and 2043 were not offered for retail. The bonds are callable at par in 2023.
Yields on the second series of $913.2 million ranged from 0.42% with a 4% coupon in 2015 to 4.32% with a 4.25% coupon in 2033. Bonds maturing between 2027 and 2043 were not offered for retail. The bonds are callable at par in 2023.
Yields on the third series of $111.6 million ranged from 0.32% with a 3% coupon in 2015 to 2.49% with a 4% coupon in 2021.
In the competitive market, Maryland Department of Transportation is expected to auction $225 million of revenue bonds, rated Aa1 by Moody's and AAA by Standard & Poor's.
On Tuesday, the triple-A Municipal Market Data scale ended stronger for the fourth consecutive session with yields falling as much as two basis points. The 30-year yield slid two basis points to 4.09%. The two-year and 10-year yields closed unchanged for the fourth session at 0.33% and 2.61%, respectively.
Yields on the Municipal Market Advisors benchmark scale ended as much as two basis points stronger. The 30-year yield slid one basis point to 4.30%. The two-year and 10-year yields were steady for the second session at 0.38% and 2.68%, respectively.
Treasuries were steady to slightly stronger. The two-year and benchmark 10-year yields each fell one basis point to 0.29% and 2.70%, respectively. The 30-year was unchanged at 3.80%.
