Municipal Market Set for Some Supply

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Municipal bond traders are looking to see new deals hit the market on Wednesday, led off by some taxable sales from issuers in Alabama and California.

Secondary Market

Treasuries were mixed on Wednesday. The yield on the two-year Treasury rose to 1.21% from 1.20% on Tuesday, while the 10-year Treasury fell to 2.40% from 2.43%, and the yield on the 30-year Treasury bond decreased to 3.01% from 3.04%.

Top-quality municipal bonds ended unchanged on Tuesday. The 10-year benchmark muni general obligation yield was flat on Tuesday from 2.37% on Friday, while the yield on the 30-year GO was steady from 3.11%, according to the final read of Municipal Market Data's triple-A scale.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 97.7% compared to 97.9% on Friday, while the 30-year muni to Treasury ratio stood at 102.4%, versus 102.8%, according to MMD.

MSRB: Previous Session's Activity

The Municipal Securities Rulemaking Board reported 42,487 trades on Tuesday on volume of $7.47 billion.

Primary Market

New issue volume this week is estimated at $3.61 billion, comprised $2.08 billion of negotiated deals and $1.53 billion of competitive sales.

In the negotiated sector, Citigroup is expected to price Alabama State Port Authority's $281 million of dock facilities revenue refunding bonds that will feature taxables, alternative-minimum tax and non-AMT bonds.

The taxables are scheduled to price on Wednesday and the tax-exempts on Thursday.

The underlying ratings are A-minus by S&P Global Ratings and Fitch Ratings. At least part of the deal will be insured by Assured Guaranty, which is rated AA by S&P.

Citi is also set to price California Educational Facilities Authority's $184 million of revenue bonds for Loma Linda University which features taxables and tax-exempts.

The taxables are slated to price on Wednesday with the tax-exempts expected to price on Thursday. The deal is rated Baa1 by Moody's Investors Service and A by S&P.

Since 2007, the California EFA has sold about $5.15 billion of bonds, with the most issuance coming in 2007 when it offered roughly $847 million.

JPMorgan Securities is expected to price the Michigan State Hospital Finance Authority's $178.52 million of refunding and project revenue bonds for Ascension Health Senior Credit Group on Wednesday. The deal is rated Aa2 by Moody's and AA-plus by S&P and Fitch.

Back in the competitive arena, the state of Delaware will sell $225 million of general obligation bonds competitively on Thursday. The deal is rated triple-A by Moody's, S&P and Fitch.

Miami-Dade County will competitively sell $176.93 million of transit system sales surtax revenue refunding bonds on Thursday. The deal is rated AA by S&P and Fitch.

The Port of Seattle will competitively to sell $129.94 million of limited tax GO bonds on Thursday. The deal is rated triple-A by Moody's and S&P and AA-minus by Fitch.

NYC MWFA Sets $375M Bond Sale

The New York City Municipal Water Finance Authority announced on Tuesday that it is planning to sell $375 million of tax-exempt fixed-rate refunding bonds in a negotiated deal on Tuesday, Feb. 28, after holding a one-day retail order period on Monday, Feb. 27.

The bonds will be sold through the authority's underwriting syndicate, led by book-running senior manager Siebert Cisneros Shank & Co. Barclays Capital and Raymond James will be co-senior managers.

Bond Buyer Visible Supply

The Bond Buyer's 30-day visible supply calendar decreased $105 million to $9.17 billion on Wednesday. The total is comprised of $4.29 billion of competitive sales and $4.88 billion of negotiated deals.

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