The municipal bond market will be watching as the Dormitory of the State of New York competitively sells $1.7 billion of bonds in five separate offerings on Tuesday.
Primary market
DASNY will offer $1.7 billion of general purpose state personal income tax revenue bonds to buyers on Tuesday,.
The offerings consist of $530.94 million of Series 2017B bidding group 2 bonds, $530.065 million of Series 2017B bidding group 3 bonds, $529.595 million of Series 2017B bidding group 1 bonds, $86.8 million of Series 2017D taxable bonds and $21.845 million of Series 2017C tax-exempt bonds.
The bonds are rated Aa1 by Moody’s and AAA by S&P.
On Thursday, DASNY will return as RBC Capital Markets will price 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 carry various ratings ranging from Aa2 and Aa3 from Moody’s to A-plus from S&P and AA-minus from Fitch.
Also on Tuesday, Goldman Sachs is expected to price the San Diego Unified School District’s $220 million of Series 2017 general obligation bonds.
The deal is rated Aa3 by Moody’s and AAA by Fitch.
Bank of America Merrill Lynch is expected to price the Maine Municipal Bond Bank’s $184 million of Series 2017 C and Series 2017 D refunding bonds on Tuesday.
The deal is rated Aa2 by Moody’s and AA-plus by S&P.
In the competitive arena on Tuesday, Columbus, Ohio, will offer $314.13 million of various purpose bonds in three separate sales.
The deals consist of $285.82 million of Series 2017A unlimited tax bonds, $19.51 million of Series 2017C taxable limited tax bonds and $8.795 million of Series 2017B limited tax bonds.
The deals are rated triple-A by Moody’s, S&P and Fitch.
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.
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.
Secondary market
U.S. Treasuries were narrowly mixed on Tuesday. The yield on the two-year Treasury was unchanged from 1.50%, the 10-year Treasury yield rose to 2.35% from 2.34% and the yield on the 30-year Treasury bond increased to 2.89% from 2.87%.
Top-rated municipal bonds finished mixed on Monday. The yield on the 10-year benchmark muni general obligation rose one basis point to 2.01% from 2.00% on Friday, while the 30-year GO yield was steady from 2.84%, according the final read of Municipal Market Data's triple-A scale.
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.
