The municipal bond market was awaiting the first of the week's new issue supply to be priced, with New York City negotiated and competitive deals in the works.
Secondary Market
Treasury prices were lower on Tuesday as the yield on the two-year Treasury note increased to 0.66% from 0.64% on Monday, while the 10-year yield rose to 2.23% from 2.19% and the 30-year yield increased to 2.87% from 2.94%.
The yield on the 10-year benchmark muni general obligation on Monday rose three basis points to 2.22% from 2.19% on Friday, while the yield on the 30-year GO was up three basis points to 3.19% from 3.16%, 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 101.4% versus 102.0% on Friday, while the 30-year muni to Treasury ratio stood at 108.2% compared to 109.7%, according to MMD.
Primary Market
JPMorgan will price the Big Apple's $616.79 million of Fiscal 2015 Series F, Subseries F-1 and Fiscal 2015 Series 1 GOs for institutions on Tuesday following a two-day retail order period. The $300 million of Series F Subseries F-1 tax-exempts were priced for retail as 3s and as 5s to yield 1.21% in a split 2018 maturity and as 5s to yield 1.97% in 2021; as 4s to yield 2.50% in 2024; as 5s to yield 2.63% in 2025; as 5s to yield 2.79% in 2026. The bonds were also priced to yield from 3.65% with a 3.5% coupon in 2033 to 3.85% with a 3.75% coupon in 2037. No retail orders were taken for the 2034 and 2035 maturities while the 2017 maturity was offered as a sealed bid.
The $316.79 Series 1 tax-exempts were priced for retail to yield from 1.27% with a 4% coupon in 2018 to 2.52% with a 5% coupon in 2024. The 2016 and 2017 maturities were offered as sealed bids.
The issue is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
In the competitive arena on Tuesday, New York City will offer two separate sales of $195 million Fiscal 2015 Subseries F-3 taxable GOs and $105 million of Fiscal 2015 Subseries F-2 taxable GOs.
Also on the competitive slate for Tuesday are the East Bay Municipal Utility District, Calif.'s $109 million of Series 2015B water system revenue green bonds, rated Aa1 by Moody's triple-A by S&P and AA-plus by Fitch; and the Broward County School District, Fla.'s $159 million of Series 2015 GO school bonds, rated Aa3 by Moody's, A-plus by S&P and AA-minus by Fitch.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 41,099 trades on Monday on volume of $10.274 billion.
The most active bond, based on the number of trades, was the Franklin County, Ohio, Series 2015A hospital improvement revenue bonds for the Nationwide Children's Hospital 4s of 2045, which traded 187 times at an average price of 98.915 with an average yield of 4.062%. The bonds were initially priced at 96.579 to yield 4.20%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $732.1 million to $14.50 billion on Tuesday. The total is comprised of $6.02 billion competitive sales and $8.48 billion of negotiated deals.
