New York City is expected to kick off a week of relatively light issuance with retail pricing Monday for $800 million of general obligation bonds.
The bonds are rated A2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings. A second retail order period is expected Tuesday followed by institutional pricing Wednesday by Bank of America Merrill Lynch.
Also in New York, Raymond James is expected to price for retail $117.3 million of Dormitory Authority of the State of New York school districts and financing program revenue bonds. Institutional pricing is expected Tuesday.
Outside the new issues, the market opened with a typical Monday morning tone. "It's quiet and flat," a secondary trader in New York said.
The retail pricings Monday come amid a drop in overall issuance this week with $5.11 billion expected to be priced, down from last week's revised $5.43 billion. In negotiated issues, $4.14 billion should be priced, down from last week's revised $4.29 billion. On the competitive calendar, $968 million is expected to be auctioned, down from last week's revised $1.14 billion.
Yields on the Municipal Market Data scale were as much as two basis points weaker Friday. The 10-year yield increased one basis point to 1.82% and the 30-year yield jumped two basis points to 2.97%. The two-year held steady at 0.28% for the seventh session.
The Municipal Market Advisors 5% scale showed yields rising as much as three basis points. The 10-year yield increased two basis points to 1.88% and the 30-year yield jumped three basis points to 3.10%. The two-year yield held steady at 0.33% for a sixth consecutive session.
Treasuries were slightly stronger Monday morning. The benchmark 10-year yield slid one basis point to 1.94% and the 30-year yield dropped two basis points to 3.15%. The two-year was flat at 0.25%.
