The municipal bond market is seeing some of the last of the big issues being priced on Tuesday. Prices of high-quality municipal bonds were firmer at mid-session, according to Municipal Market Data.
Primary Market
Siebert Brandford Shank priced the $229 million Los Angeles Department of Water and Power revenue bonds. The bonds were priced as serials to yield from 1.08% with a 5% coupon in 2019 to 2.91% with a 5% coupon in 2035; a 2039 term was priced as 5s to yield 3.05% and a 2044 term was priced as 5s to yield 3.15%. The issue is rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's and Fitch Ratings.
Citigroup Global Markets priced the Arizona Transportation Board's $376.2 million highway revenue refunding bonds. The bonds were priced to yield from 0.30% with a 3% coupon in 2016 to 2.74% with a 5% coupon in 2033; a 2015 maturity was offered as a sealed bid. The issue is rated Aa1 by Moody's and triple-A by S&P.
Morgan Stanley priced the Arizona Health Facilities Authority's $304.325 million revenue bonds for the Scottsdale Lincoln Hospitals. The bonds were priced to yield from 0.70% with a 3% coupon in 2016 to 3.44% with a 5% coupon in 2034. A split 2039 maturity was priced as 4s to yield 4.12% and as 5s to yield 3.61%; a 2039 Step Coupon maturity was priced at par to yield 2.75%; a 2042 maturity was priced as 5s to yield 3.69%; and a 2015 maturity was offered as a sealed bid. The issue is rated A2 by Moody's and A by Fitch.
Secondary Market
High-grade municipal bond prices moved higher. The yield on the benchmark 10-year general obligation bond fell from one to three basis points from 1.99% on Monday while the yield on 30-year GOs was off from two to four basis points from 2.89% on Monday, according to a midday read of Municipal Market Data's triple-A scale.
Treasury prices were slightly higher, with the two-year note yield falling to 0.56% from 0.58% on Monday. The 10-year yield fell to 2.10% from 2.11% while the 30-year decreased to 2.72% from 2.74% on Monday.
On Monday, the 10-year muni-to-Treasury ratio was calculated at 94.1% on Monday versus 94.5% on Monday; the 30-year muni to Treasury ratio was at 105.3%, compared with 104.7% on Monday.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,215 trades on Monday on volume of $7.759 billion.
Most active on Monday, based on the number of trades, were the New Jersey Transportation Trust Fund Authority transportation program bonds, Series AA 4 1/4s of 2044, which traded 123 times with an average price of 100.251 and an average yield of 4.193%.
