The municipal bond market is eagerly awaiting the rest of the week's new issue supply as the end of the year slowly approaches.
There are $3.067 billion of negotiated deals scheduled for the week compared to $10.867 billion last week.
Several large deals came to market on Monday, and a few big deals are left on this week's slate.
Primary Market
On Monday, Bank of America Merrill Lynch priced the New York State Dormitory Authority's $510.37 million tax-exempt and taxable personal income tax revenue bond deal for retail investors ahead of the institutional pricing on Tuesday.
Siebert Brandford Shank on Monday priced the $229 million Los Angeles Department of Water and Power bonds for retail ahead of Tuesday's pricing for institutions.
Citigroup Global Markets will price the Arizona Transportation Board's $380 million highway revenue refunding bonds.
The New York City Housing Development Corp.'s $235 million multi-family rental housing revenue bonds (NYCHA Triborough Preservation Development) will be priced by Morgan Stanley.
In the competitive arena, Massachusetts has scheduled $205.235 million of SIFMA-indexed general obligation refunding bonds in two separate sales on Wednesday of $33.435 million Series D and $171.8 million Series E bonds.
Secondary Market
Treasury prices were higher on Tuesday, with the two-year note yield falling to 0.54% from 0.58% on Monday. The 10-year yield fell to 2.05% from 2.11% while the 30-year decreased to 2.70% from 2.74% on Monday.
On Monday, high-grade municipal bond prices moved slightly lower. The yield on the benchmark 10-year general obligation rose one basis point to 1.99% from 1.98% on Friday while the yield on 30-year GOs was up one basis point to 2.89% from 2.88%, according to the final read of Municipal Market Data's triple-A scale.
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%.
