Municipal bond buyers will be seeing almost $5 billion of bonds hit the market on Tuesday, led by big sales from California and Illinois.

Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.96% on Friday, while the 30-year GO yield fell two basis points to 2.72% from 2.74%, according to the final read of Municipal Market Data's triple-A scale.

U.S. Treasuries were mostly weaker on Tuesday. The yield on the two-year Treasury remained at 1.55%, the 10-year Treasury yield gained to 2.32% from 2.31% and yield on the 30-year Treasury bond increased to 2.83% from 2.82%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 84.8% compared with 86.0% on Friday, while the 30-year muni-to-Treasury ratio stood at 96.5% versus 97.2%, according to MMD.

AP-MBIS 10-year muni dips to 2.29%
The Associated Press-MBIS 10-year municipal benchmark 5% general obligation was at 2.28% early on Tuesday, unchanged from the final read of 2.28% on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers.

The AP-MBIS index is a yield curve built on market data aggregated from MBIS member firms and is updated hourly on the Bond Buyer Data Workstation.

Primary market
California is coming to market with $1.59 billion of various purpose general obligation bonds in three separate competitive sales on Tuesday.

The offerings consist of $557.22 million of tax-exempt Bid Group B $64 million GOs and $493.22 million refunding GOs; $522.53 million of tax-exempt Bid Group C $134.66 million GOs and $387.88 million refunding GOs; and $508.57 million of Bid Group A taxable GOs.

The deals are rated Aa3 by Moody’s Investors Service, and AA-minus by S&P Global Ratings and Fitch Ratings.

Meanwhile, Illinois is competitively selling $1.5 billion of GOs in three separate sales.

The offerings consist of $500 million Series of November 2017A GOs, $500 million of Series of November 2017B GOs and $500 million of Series of November 2017C GOs.

The deals are rated Baa3 by Moody’s, BBB-minus by S&P and BBB by Fitch.

With this week's sales, since 2013, the Golden State has issued $37.6 billion while the Prairie State has issued $10.64 billion of securities. California saw a low year of issuance in 2014 when it sold $6.24 billion and saw a high in 2016 with $8.92 billion, while Illinois did not come to market in 2015 and saw its high the next year, when it sold $3.36 billion.

Also Tuesday, Nevada is competitively selling $114.96 million of limited tax GOs in six separate sales.

The offerings consist of $84.36 million Series 2017A capital improvement GOs, $8.24 million of Series 2017C open space, parks, natural resources and refunding GOS, $6.29 million of Series 2017E safe drinking water revolving fund matching GOs, $6.21 million of Series 2017B natural resources and refunding GOs, $6 million of Series 2017D Nevada Municipal Bond Bank Project No. 9 GOs, and $3.87 million of Series 2017F water pollution control revolving fund matching GOs.

The deals are rated Aa2 by Moody’s, AAA by S&P and AA-plus by Fitch.

Also Tuesday, the Virginia Public School Authority is competitively selling $116.01 million of 1997 Resolution Series 2017C school financing bonds.

The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.

In the negotiated sector on Tuesday, Goldman Sachs is set to hold a second day of retail orders on the New York City Transitional Finance Authority’s $850 million of Fiscal 2018 Series B Subseries B-1 future tax secured subordinate bonds.

The issue was priced on Monday to yield from 1.01% with 3% and 5% coupons in a split 2019 maturity to approximately 3.40% in 2045. No retail orders were taken in the 2031-2033, 2036, 2038-2041, or 2043 maturities.

The deal has a two-day retail order period before being priced for institutions on Wednesday when the TFA will also competitively sell $140 million of taxable Fiscal 2018 Series B Subseries B-2 future tax secured subordinate bonds.

The deals are rated Aa1 by Moody’s and AAA by S&P and Fitch.

And Citigroup is slated to price the Berks County Industrial Development Authority, Pa.’s $575 million of health system revenue bonds for Tower Health.

The deal is rated A3 by Moody’s and A by S&P and Fitch.

JPMorgan Securities is expected to price the San Diego Association of Governments $204.51 million of Series 2017A toll revenue first senior lien bonds for the South Bay Expressway.

The deal is rated A by S&P and A-minus by Fitch.

Also this week, Massachusetts is selling $818.125 million of bonds in three competitive offerings on Wednesday while the New York Metropolitan Transportation Authority is selling $1 billion of notes in two competitive deals on Thursday.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $100.5 million to $16.82 billion on Tuesday. The total is comprised of $7 billion of competitive sales and $9.82 billion of negotiated deals.

Data appearing in this article from Municipal Bond Information Services, including the AP-MBIS municipal bond index, is available on the Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8372 for more information.

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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.