Municipal market participants are set for action to get started in the primary with several large negotiated and competitive deals on tap, led by issuers in New York, Florida and Virginia.
Secondary market
U.S. Treasuries were stronger on Tuesday. The yield on the two-year Treasury declined to 1.18% from 1.20% on Monday, while the 10-year Treasury yield dropped to 2.22% from 2.26%, and the yield on the 30-year Treasury bond decreased to 2.88% from 2.92%.
Municipal bonds ended mixed on Monday. The yield on the 10-year benchmark muni general obligation fell one basis point to 2.07% from 2.08% on Thursday, while the 30-year GO yield was unchanged from 2.91%, according to the final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni to Treasury ratio was calculated at 91.6% compared with 93.3% on Thursday, while the 30-year muni to Treasury ratio stood at 100.0%, versus 101.0%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 39,948 trades on Thursday on volume of $7.995 billion.
Primary Market
In the negotiated sector on Tuesday, Siebert Cisneros Shank is set to price the Dormitory Authority of the State of New York’s $300 million of Series 2017A dormitory facilities revenue bonds for retail investors ahead of the institutional pricing on Wednesday.
The DASNY deal is rated Aa3 by Moody’s Investors Service and A-plus by Fitch Ratings.
Wells Fargo Securities is expected to price the Katy Independent School District, Texas’ $257.46 million of Series 2017 unlimited tax school building bonds.
The deal, which is backed by the Permanent School Fund guarantee program, is rated Aa1 by Moody’s and AA-minus by S&P Global Ratings.
Bank of America Merrill Lynch is set to price the Geisinger Authority, Pa.’s $240 million of Series 2017A-2 health system revenue bonds for the Geisinger Health System for retail investors ahead of the institutional pricing on Wednesday.
The deal is rated Aa2 by Moody’s and AA by S&P.
In the short-term sector, Wells Fargo is expected to price the Golden Empire Schools Financing Authority, Calif.’s $130 million of 2017 lease revenue refunding notes for the Kern High School District.
The deal is rated MIG1 by Moody’s and SP1-plus by S&P.
In the competitive arena on Tuesday, the Miami-Dade County School District, Fla., is selling $250 million of Series 2017 unlimited tax general obligation bonds.
The deal is rated Aa3 by Moody’s.
Henrico County, Va., is competitively selling $100.65 million of Series 2017A unlimited tax GOs on Tuesday.
The deal is rated triple-A by Moody’s, S&P and Fitch.
Since 2008, the county has issued about $972 million of debt, with the most issuance occurring in 2010 when it sold almost $192 million of securities. It sold the least debt in 2012, when it offered $37.5 million of bonds.
Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar increased $100.6 million to $14.50 billion on Tuesday. The total is comprised of $4.15 billion of competitive sales and $10.35 billion of negotiated deals.
