A slew of issuance is scheduled to come to market Tuesday. There's a little of everything in the primary for investors with several BBB credits expected to be priced, as well as some highly rated competitive issuances. Also, after strengthening for so long the Treasury market finally started to weaken Tuesday morning.
Primary
- $305.87 million Delaware general obligation bonds will enter institutional sale Tuesday after a strong retail order period on Monday. Yields on the bonds during retail ranged from 0.27% with a 2% coupon in 2016 to 3.08% with a 3% coupon in 2034. They are rated triple-A by the three major rating agencies. JP Morgan is the lead underwriter.
- On the negotiated calendar the Maryland Health and Higher Education Facilities Authority is selling $249.3 million educational facilities authority revenue bonds for the western Maryland Health System. This is the largest of the triple-B credits expected to price Tuesday, as the bonds earned a BBB rating from Standard & Poor's. Wells Fargo Securities is the managing underwriter
- There are $216 million Grant County, Wash., Priest Rapids Hydroelectric Project revenue and refunding bonds coming in three parts with $151 million tax-exempt, $52 million subject to the alternative minimum tax, and $16 million taxable. A retail order period was held Monday, and the bonds are rated Aa3 by Moody's Investors Service and AA from S&P and Fitch Ratings.
- The Washington Health Care Facilities Authority is issuing $181 million for Providence Health, with Bank of America Merrill Lynch as the lead underwriter. The bonds carry ratings of Aa3 from Moody's, AA-minus from S&P and AA from Fitch.
- Lincoln County, Wyo., is issuing $134 million variable rate pollution control revenue refunding bonds as part of an ExxonMobil Project. Bank of America Merrill Lynch is the managing underwriter and the deal earned a Aaa rating from Moody's.
- The North Slope Borough of Alaska is selling a two-part $130.5 million GO issuance with KeyBanc Capital Markets as the managing underwriter. The first part totaled $104.5 million and the second $25.95 million, and the bonds are rated Aa2 by Moody's, AA-minus by S&P and AA by Fitch.
- $110 million South Dakota Housing Development Authority homeownership mortgage bonds are expected to be priced by Citigroup. The deal contains both taxable and tax-exempt bonds and they are rated Aa1 by Moody's and AAA by S&P.
- Another deal that promises some yield is the $97 million Kern County Tobacco Funding Corporation tobacco settlement asset-backed refunding bonds, scheduled for pricing by Raymond James, and rated BBB-plus by Fitch.
- The competitive calendar is strong Tuesday after a fairly light week last week, topped by $230 million Fairfax County, Va., public improvement refunding bonds scheduled for auction at 11 a.m., EST. The deal is rated triple-A by the three major rating agencies.
- On the Fairfax deal's heels is the two-part $182.7 million Hennepin County, Minn., GO refunding bonds with the $100 million portion to be auctioned at 10:45 a.m., EST, and the $82.7 million portion at 11:15 a.m., EST. These bonds earned triple-A ratings from S&P and Fitch.
- The competitive calendar has a third strong-rated credit scheduled for auction at noon the $129.9 million Florida Board of Education's full faith and credit capital outlay refunding bonds. The bonds are rated triple-A by S&P and Fitch, and Aa1 by Moody's.
Scales
The market continues to sell-off Tuesday morning with bonds maturing in five years yields rising from one to three basis points, according to Municipal Market Data's triple-A scale. Six to 30 year yields increased from two to four basis points. The front end of the curve is under review, according to MMD.
Treasuries also weakened slightly Tuesday morning from Monday's market close with the two-year note yield rising by one basis point to 0.38%. The 10-year yield increased by two basis points to 2.22%, and the 30-year by three basis points to 2.99%.
