The muni market on Tuesday was looking ahead to the institutional pricing of the city and county of Honolulu, Hawaii's $879 million of Series A-D tax-exempt and Series E taxable general obligation bonds. Bank of America Merrill Lynch priced the deal for retail investors on Monday. The bonds are rated Aa1 by Moody's Investors Service and AA-plus by Fitch Ratings.
Primary Market
Goldman, Sachs is set to price the Illinois Finance Authority's $283 million of Series 2015C revenue refunding bonds for the Silver Cross Hospital and Medical Center on Tuesday.
On the competitive note slate for Tuesday is a $200 million sale from Baltimore County, Md. The sale is composed of $112 million of consolidated public improvement bond anticipation notes and $88 million of Metropolitan District BANs. The notes are rated MIG-1 by Moody's, SP-1-plus by S&P and F-1-plus by Fitch.
Baltimore County last sold bonds on Dec. 10, 2014, when JPMorgan won $200 million public improvement and Metropolitan District bonds with a TIC of 3.0093%. The county sold notes in two sales on Jan. 24, 2013; Merrill Lynch won the $212 million Metropolitan District BANs with a TIC of 0.1642% and PNC Capital Markets won $11.83 million of certificates of participation with a TIC of 1.3477%.
Secondary Market
Treasury prices were higher on Tuesday. The yield on the two-year Treasury note declined to 0.64% from 0.65% on Monday, while the 10-year yield decreased to 2.05% from 2.10% and the 30-year yield dropped to 2.62% from 2.68%.
Prices of top-quality municipal bonds moved slightly higher on Monday. The yield on the 10-year benchmark muni general obligation dropped two basis points to 2.12% from 2.14% on Friday, while the yield on 30-year GO decreased by one basis point to 2.93% from 2.94%, 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 99.9% versus 100.4% on Friday, while the 30-year muni to Treasury ratio stood at 109.2% compared to 108.6%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $841.0 million to $10.653 billion on Tuesday. The total is comprised of $3.123 billion competitive sales and $7.530 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,310 trades on Monday on volume of $7.180 billion.
Most active on Monday, based on the number of trades, was the New York City Fiscal 2015 Series D GO 3.20s of 2028, which traded 234 times at an average price of 99.877 with an average yield of 3.201%; (initial offering price of 100.00 and an initial offering yield of yield of 3.20%).
