Municipals continued to strengthen as the first of the week's issuance starting to roll in on Tuesday, including the second biggest deal of the week.

Primary market
In early Tuesday action, Goldman Sachs priced the Salt River Project Agricultural Improvement and Power District, Ariz.’s $739.61 million of Series 2017A electric system revenue bonds.

The issue was priced as 5s to yield from 1.26% in 2021 to 2.72% in 2039.

The deal is rated Aa1 by Moody’s Investors Service and AA by S&P Global Ratings.

Since 2008, the district has issued about $5.67 billion of debt with the most issuance occurring in 2009 when it sold $1.04 billion. It did not come to market in 2013 or 2014.

Siebert Cisneros Shank priced for retail the New York Triborough Bridge and Tunnel Authority’s $528.02 million of Series 2017C general revenue refunding bonds for MTA bridges and tunnels.

The issue was priced to yield from 1.62% with a 5% coupon in 2023 to 2.26% with a 5% coupon in 2028.

The deal is rated Aa3 by Moody’s and AA-minus by S&P and Fitch Ratings.

Also on Tuesday, Citi is scheduled to price Broward County, Fla.’s $307 million of airport system revenue bonds. The deal is rated A1 by Moody’s and A-plus by S&P.

JPMorgan is slated to price the Board of Regents of the University of Texas’ $300 million of system permanent fund taxable bonds. The deal carries top ratings of triple-A by Moody’s, S&P and Fitch.

In the competitive arena, the Virginia College Building Authority is on the docket to sell a total of $136.245 million of educational facilities revenue public higher education financing program and taxable bonds in two separate sales on Tuesday. The deals are rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $101.4 million to $12.06 billion on Tuesday. The total is comprised of $4.54 billion of competitive sales and $7.52 billion of negotiated deals.

AP-MBIS 10-year muni at 2.269%, 30-year at 2.793%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was stronger on trading early Tuesday morning.

The 10-year muni benchmark yield fell to 2.269% from 2.285% from the final read on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield declined to 2.793% from 2.840%.

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

Secondary market
Top-shelf municipal bonds were stronger on Tuesday morning. The yield on the 10-year benchmark muni general obligation was as many as two basis points lower from 1.96% on Monday, while the 30-year GO yield was as many as five basis points lower from 2.68%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were mostly unchanged on Tuesday morning. The yield on the two-year Treasury rose to 1.62% from 1.61%, the 10-year Treasury yield was flat at 2.32% and yield on the 30-year Treasury was steady at 2.79%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 82.5% compared with 84.9% on Friday, while the 30-year muni-to-Treasury ratio stood at 94.8% versus 97.4%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 34,871 trades on Monday on volume of $8.56 billion.

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 212-803-8474 for more information.

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Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.
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.