The first noteworthy deals of the week hit screens on Tuesday, as six large deals are expected to price.
The day's deals will be highlighted by Florida Development Finance Corporation's $1.75 billion of revenue bonds for the All Aboard Florida passenger rail project.
Secondary Market
Treasuries were mostly higher on Tuesday morning, as the yield on the two-year Treasury fell to 0.87% from 0.88% on Monday. The 10-year Treasury yield dropped to 2.34% from 2.35% on Monday and the 30-year yield was flat at 3.11%.
The yield on the 10-year benchmark muni general obligation on Monday's close was three basis points higher to 2.19% from 2.16% on Friday, while the 30-year GO was also up three basis points to 3.20% from 3.17% on Friday, according to a final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Monday at 93.2% versus 92.7% on Friday, while the 30-year muni to Treasury ratio stood at 102.8% compared to 102.6%, according to MMD.
Primary Market
The largest deal on the calendar is the $1.75 billion of revenue bonds for the All Aboard Florida passenger rail project. The deal is expected to be priced by Bank of America Merrill Lynch. The deal is not rated and is being sold to qualified institutional buyers and accredited investors.
On the eve of pricing the bonds for a privately owned intercity passenger train system, the Florida developers unveiled the service's new name.
Using its Miami station as a backdrop Monday, All Aboard Florida officials introduced Brightline as the name of the express train service it plans to operate on a 235-mile route between Miami and Orlando.
"With the introduction of Brightline, we set out to reinvent what traveling by train can mean in America, making it a forward-leaning solution that is a smarter alternative to more cars on crowded roads," said AAF President Michael Reininger.
JPMorgan is expected to price the Central Texas Regional Mobility's $375 million of senior lien revenue and refunding put bonds on Tuesday. The deal is expected to mature serially from 2025 to 2045 and is rated Baa2 by Moody's and BBB-plus by S&P.
BAML is also scheduled to price the school board of Miami-Dade Counties' $229 million of certificates of participation on Tuesday. The COPs are rated A1 by Moody's and A-minus by S&P.
JPMorgan is also slated to price Kershaw County, S.C., public schools foundation's $101.91 million of refunding revenue bonds. The bonds are rated A1 by Moody's and A-minus by S&P.
In the competitive arena on Tuesday, the Washington, Md., suburban sanitation department will be selling $150.67 million of consolidated public improvement refunding bonds. The deal is rated Aaa by Moody's and triple-A by both S&P and Fitch Ratings.
Washtubs is a frequent market participant, and most recently sold $390 million last month, when Bank of America Merrill Lynch won the bonds with a true interest cost of 3.43%.
The New Jersey Environmental Infrastructure Trust will be selling three separate issues totaling $140.69 million on Tuesday. The largest of the three issues will be $117.475 million of refunding bonds, Series 2015B-R2, which will be subject to alternative minimum tax.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 31,418 trades on Monday on volume of $5.294 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $1.342 billion to $7.65 billion on Monday. The total is comprised of $3.71 billion competitive sales and $3.94 billion of negotiated deals.
Shelly Sigo contributed to this report
