The municipal market will start to bounce back on Tuesday, after a sleepy Monday and Friday. Below, the highlights of the day.
Primary
- The Florida Department of Environmental Protection will issue its Florida Forever revenue refunding bonds in the competitive market at noon on Tuesday. The $223.355 million issuance will look to capitalize on front end curve popularity and has maturities ranging from 2016 through 2025. The deal carries a split rating: Moody's Investors Service rates the deal A1, Standard & Poor's gave it a AA-minus, and Fitch Ratings gave it a single-A. The bonds are secured by a pledge of excise taxes.
- The Ohio Public Facilities Commission will also tap the competitive market on Tuesday at 10:30 a.m. with $150 million infrastructure improvement general obligation bonds. The deal carries maturities ranging from 2016 through 2032 and is rated Aa1 by Moody's and AA-plus by S&P and Fitch.
Information provided by Ipreo, TM3, and The Bond Buyer.
Secondary
- Trading was light on Tuesday morning, with no individual trades of more than $10 million on a single security. Traders expected the secondary to pick up as the day went on and primary pricing gave an indication of the day's directionality.
Scales
- Scales information for Tuesday morning was not available at the time of publication. The Municipal Market Data triple-A 5% curve strengthened on Monday in the intermediate and long ends of the curve; bonds maturing in six to eight years dropped by one basis point in yield, while those maturing in nine to 30 years fell by two basis points, while the front end of curve held steady.
Treasury Market
- Treasury yields held nearly steady from Monday's market close. On Tuesday morning yields on the two-year rose one basis point to 0.59%, while the 10- and 30-year held steady at 2.50% and 3.18% respectively.
