Top-rated municipal bonds strengthened at mid-session as the Dormitory of the State of New York competitively sold almost $1.7 billion of bonds in a handful of offerings.

Primary market
DASNY sold its general purpose state personal income tax revenue bonds in five groups on Tuesday.

Goldman Sachs won the $569.65 million of Series 2017B bidding group 1 bonds with a TIC of 1.76%. The issue was priced as 5s to yield from 0.98% in 2019 to 2.11% in 2027.

Bank of America Merrill Lynch won the $517.21 million of Series 2017B bidding group 2 bonds with a true interest cost of 3.19%. The issue was priced as 5s to yield from 2.25% in 2028 to 2.87% in 2037.

Morgan Stanley won the $533.54 million of Series 2017B bidding group 3 bonds with a TIC of 3.79%. Pricing information was not immediately available.

JPMorgan Securities won the $34.71 million of Series 2017D taxable bonds with a TIC of 1.84%. Roosevelt & Cross won the $21.94 million of Series 2017C tax-exempt bonds with a TIC of 3.35%.

The PITs are rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings.

DASNY will return to the market on Thursday when RBC Capital Markets prices the authority’s $301.48 million of school districts and financing program revenue bonds in five series. The Series 2017 F, G, H, I and J bonds carry various ratings ranging from Aa2 and Aa3 from Moody’s to A-plus from S&P and AA-minus from Fitch.

In the competitive arena on Tuesday, Columbus, Ohio, sold $314.12 million of various purpose bonds in three separate sales.

Morgan Stanley won the $285.82 million of Series 2017A unlimited tax bonds with a TIC of 2.64%. Pricing information was not immediately available.

PNC Capital Markets won the $19.51 million of Series 2017C taxable limited tax bonds with a TIC of 2.55% while it also won the $8.8 million of Series 2017B limited tax bonds with a TIC of 2.14%.

The deals are rated triple-A by Moody’s, S&P and Fitch Ratings.

Since 2007, the Arch City has sold about $5.3 billion of bonds, with the most issuance occurring in 2012 when it issued $770 million. It sold the least amount of debt in 2007, when it offered $228 million of bonds.

In the short-term competitive arena, Milwaukee, Wis., sold $180 million of Series 2017 school revenue anticipation notes. BAML won the notes with a bid of 5% and a premium of $6,650,999.99, an effective rate of 1.024264% and priced the RANs as 5s to yield 1% in 2018.

The notes are rated SP1-plus by S&P and F1-plus by Fitch.

In the negotiated sector, Bank of America Merrill Lynch priced the Maine Municipal Bond Bank’s $179.31 million of Series 2017C bonds and Series 2017D refunding bonds on Tuesday.

The $93.97 million of Series 2017C bonds were priced as 5s to yield from 1.02% in 2018 to 2.95% in 2037.

The $85.34 million of Series 2017D bonds were priced to yield from 1.02% with a 3% coupon in 2018 to 3% at par in 2031.

The deal is rated Aa2 by Moody’s and AA-plus by S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $71.8 million to $9.15 billion on Tuesday. The total is comprised of $3.77 billion of competitive sales and $5.38 billion of negotiated deals.

Salt River Project preps $700M sale
The Salt River Project Agricultural Improvement and Power District, Ariz., said it intends to sell about $700 million of tax-exempt fixed-rate electric system revenue bonds the week of Nov. 6, subject to market conditions.

Proceeds of the sale will be used to finance improvements to the district's electric system and to refund all or some of the district's outstanding Series 2009A revenue bonds.

The deal, which will be sold through negotiation with Goldman Sachs as senior manager, is rated Aa1 by Moody's and AA by S&P.

Secondary market
The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 2.01% on Monday, while the 30-year GO yield dropped as much as one basis point from 2.84%, according a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were narrowly mixed on Tuesday. The yield on the two-year Treasury dropped to 1.49% from 1.50%, the 10-year Treasury yield fell to 2.32% from 2.34% and the yield on the 30-year Treasury bond was flat from 2.87%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 85.9% compared with 86.2% on Friday, while the 30-year muni-to-Treasury ratio stood at 99.0% versus 99.5%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,260 trades on Monday on volume of $9.93 billion.

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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.