Municipal bond traders were looking to find a few good deals on Tuesday, as the week's skimpy new issue volume was set to dry up.
Secondary Market
Treasury yields were higher on Tuesday. The two-year Treasury yield declined to 0.91% from 0.92% on Monday while the 10-year Treasury yield dropped to 2.22% from 2.25% and the 30-year yield decreased to 2.98% from 3.00%.
On Monday, prices of top-rated munis ended higher. The yield on the 10-year benchmark muni general obligation was down one basis point to 2.05% from 2.06% on Friday, while the 30-year yield was off one basis point to 3.00% from 3.01%, 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 91.3% from 91.1% on Friday, while the 30-year muni to Treasury ratio stood at 99.8% compared to 99.8%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,290 trades on Monday on volume of $5.63 billion.
Primary Market
On Tuesday, RBC Capital Markets is set to price the Minnesota Housing Finance Agency's $136.45 million of residential housing finance bonds.
The deal is tentatively structured as $96.93 million of Series 2015E alternative minimum tax bonds and $39.52 million of Series 2015 F non-AMT bonds.
The issue is rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's.
Kutak Rock is bond counsel and CSG Advisors is the financial advisor on the deal.
Since 2005, the agency has issued about $4.2 billion of debt. The most issuance took place in 2006 and 2007, when the MHFA sold $686 million and $587 million, respectively. The agency sold the least amount of debt in 2010 and 2011, when they issued just $86 million and $248 million, respectively. Since 2005, the MHFA has come to market an average of 8.8 times a year.
Also on Tuesday, Wells Fargo Securities is scheduled to price the Mississippi Development Bank's Municipal Energy Agency's $86.72 million of power supply refunding bonds. The deal is tentatively structured to mature from 2016 to 2035 and includes a 2041 term bond.
At least part of the deal is expected to be insured by Assured Guaranty Municipal. The issue is rated A2 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $1.08 billion to $7.44 billion on Tuesday. The total is comprised of $3.64 billion competitive sales and $3.80 billion of negotiated deals.
