The first of the week's new deals are set to come to market on Tuesday, led by a three-pronged competitive general obligation bond sale from the state of Ohio totaling $345 million.
Primary Market
This week's calendar is made up of nearly $6 billion of negotiated deals and about $3.2 billion of competitive sales.
Leading off Tuesday's slate is the state of Ohio, which is selling three separate competitive issues totaling $345 million. The issues consist of $300 million of Series 2015B common schools GOs, $35 million of Series T natural resources GOs, and $10 million of Series 2015B taxable higher education GOs. All three issues are rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
The last time Ohio competitively sold common school refunding GOs was on Jan. 7 when Wells Fargo Securities won $72.4 million of Series 2015A with a true interest cost of 2.0699%. The last time Ohio competitively sold natural resources GOs was on June 12, 2012, when FTN Financial Capital Markets won $15.8 million of Series R with a TIC of 1.2726%. And the last time Ohio competitively sold higher education refunding GOs was on Jan. 7 when PNC Capital Markets won $28.2 million of Series 2015A with a TIC of 2.1132%.
Also in the competitive arena, the Massachusetts School Building Authority will sell $300 million of Series 2015 senior dedicated sales tax bonds. The issue is rated Aa2 by Moody's. The last time the Massachusetts SBA sold bonds was on Jan. 7 when Bank of America Merrill Lynch won $76.32 million of Series 2015A senior dedicated sales tax refunding bonds with a TIC of 0.1341%.
In the negotiated sector, Goldman, Sachs is slated to price the Florida Mid-Bay Bridge Authority's $279 million of tax-exempt and taxable first senior lien revenue bonds and tax-exempt second senior lien revenue bonds. The first senior lien bonds are rated BBB-plus by Moody's and S&P and the second senior lien bonds are rated BBB by Moody's and S&P.
Goldman is also expected to price the Los Angeles Community College District's $310 million of GOs for retail investors; the institutional pricing is slated for Wednesday. The bonds are rated Aa1 by Moody's and AA-plus by S&P.
Secondary Market
Treasury prices were mixed on Tuesday as the yield on the two-year Treasury note declined to 0.59% from 0.60% on Monday, while the 10-year yield decreased to 2.12% from 2.13% and the 30-year yield remained unchanged at 2.86%.
The yield on the 10-year benchmark muni general obligation on Monday ended flat at 2.16% from Friday, while the yield on the 30-year GO rose by one basis point to 3.09% from 3.08%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Monday at 101.3% versus 102.2% on Friday, while the 30-year muni to Treasury ratio stood at 107.9% compared to 108.9%, according to MMD.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $84.8 million to $12.963 billion on Tuesday. The total is comprised of $5.151 billion competitive sales and $7.812 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 41,242 trades on Monday on volume of $9.438 billion.
The most active bond, based on the number of trades, was the Massachusetts Series B consolidated loan of 2015 general obligation 4s of 2038, which traded 167 times at an average price of 102.173 with an average yield of 3.509%. The bonds were initially priced at 102.265 to yield 3.67%.
