The municipal bond market was quiet on Monday ahead an early close to trading and Tuesday’s full close for the Fourth of July holiday. Volume for the week is estimated at $130.4 million, the smallest volume week of 2017.

Secondary market
Treasuries were weaker on Monday. The yield on the two-year Treasury rose to 1.41% from 1.38% on Friday, the 10-year Treasury yield gained to 2.33% from 2.30% and the yield on the 30-year Treasury bond increased to 2.85% from 2.84%.

Top-shelf municipal bonds finished unchanged on Friday. The yield on the 10-year benchmark muni general obligation was flat from 1.99% on Thursday, while the 30-year GO yield was steady from 2.79%, according to the final read of Municipal Market Data's triple-A scale.

The 10-year muni to Treasury ratio was calculated at 86.5% on Friday, compared with 87.7% on Thursday, while the 30-year muni to Treasury ratio stood at 98.2% versus 99.0%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 34,518 trades on Friday on volume of $8.07 billion.

Prior week's actively traded issues
Revenue bonds comprised 54.22% of new issuance in the week ended June 30, up from 53.61% in the previous week, according to Markit. General obligation bonds comprised 39.79% of total issuance, down from 40.58%, while taxable bonds made up 5.99%, up from 5.81%.

In the GO bond sector, the Jersey City, N.J., 3.375s of 2040 were traded 22 times. In the revenue bond sector, the New York City Transitional Finance Authority 4s of 2044 were traded 66 times. And in the taxable bond sector, the Missouri Health and Educational Facilities Authority 3.652s of 2057 were traded 90 times.

Previous week's top underwriters
The top negotiated and competitive municipal bond underwriters of last week included Morgan Stanley, Bank of America Merrill Lynch, Raymond James, Wells Fargo Securities, and Citigroup, according to Thomson Reuters data.

In the week of June 25 to July 1, Morgan Stanley underwrote $961.8 million, BAML $637.5 million, Raymond James $588.1 million, Wells $564.9 million, and Citi $563.2 million.

Primary market
The week’s calendar consists of $46.5 million of negotiated deals and $83.9 million of competitive sales. No deals above $100 million are scheduled.

In the negotiated sector, Citigroup is set to price the biggest deal of the week on Thursday -- Denton, Texas’ $77 million of Series 2017 permanent improvement refunding bonds.

The deal is rated triple-A by Moody’s Investors Service and S&P Global Ratings.

In the competitive arena on Thursday, Stamford, Conn., is selling $30 million of general obligation bonds in two separate sales.

The offerings consist of $25 million of Issue of 2017 Series A GOs and $5 million of Issue of 2017 Series B GOs.

The deals are rated AAA by S&P and Fitch Ratings.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $3.45 billion to $5.91 billion on Monday. The total is comprised of $2.11 billion of competitive sales and $3.79 billion of negotiated deals.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.