Municipal bond traders are set to see the first of the week's big new issues hit the screens starting on Tuesday, the state of Georgia sells about $1.37 billion by competitive bid.
Secondary Market
U.S. Treasuries were little changed on Monday. The yield on the two-year Treasury slipped to 0.78% from 0.79% on Monday, while the 10-year Treasury yield was flat from 1.72% and the yield on the 30-year Treasury bond was unchanged from 2.54%.
Top-quality municipal bonds finished steady on Monday. The yield on 10-year benchmark muni general obligation ended unchanged from 1.62% on Friday, while the 30-year muni yield was steady from 2.40%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 94.1% on Monday compared to 95.1% on Friday, while the 30-year muni to Treasury ratio stood at 94.3% versus 95.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,471 trades on Monday on volume of $10.21 billion.
Primary Market
This week's muni supply is estimated at $12.71 billion, consisting of $7.29 billion of negotiated deals and $5.42 billion of competitive sales.
On Tuesday, Georgia will competitively sell about $1.37 billion of bonds in five separate offerings.
The deals include $382 million of Series 2016C-1 and C-2 general obligation refunding bonds, $362 million of Series 2016A Tranche 1 GOs, $356 million of Series 2016A Tranche 2 GOs, $200 million of Series 2016B taxable GOs, and $68 million of Series 2016D taxable refunding GOs.
All five sales are rated triple-A by Moody's Investors Service, S&P Global Ratings and Fitch Ratings.
Since 2006, the Peach State has sold about $13 billion of bonds, with the most issuance occurring in 2009 when it sold $2.51 billion and the least happening in 2008 when it sold $522.5 million.
Also on Tuesday, Prince George's County, Md., will competitively sell $177 million of GOs in two separate offerings consisting of $115.8 million of Series 2016A GO consolidated public improvement bonds and $61.55 million of Series 2016B GO consolidated public improvement refunding bonds. Both deals are rated triple-A by Moody's, S&P and Fitch.
In the negotiated sector on Tuesday, Citigroup is expected to price the New York Transportation Development Corp.'s $850 million of special facility revenue refunding AMT bonds for the American Airlines JFK Project.
JP Morgan is expected to price the District of Columbia's $422 million of Series 2016A of GO bonds. The deal is rated Aa1 by Moody's and AA by S&P and Fitch.
And Barclays Capital is set to price the Pennsylvania State University's $349 million of Series 2016B refunding bonds. The deal is rated Aa1 by Moody's and AA by S&P.
On Tuesday's short-term negotiated calendar, Piper Jaffray is slated to price Idaho's $514 million of tax anticipation notes.
Late Monday, Bank of America Merrill Lynch priced the Metropolitan Water Reclamation District of Greater Chicago's $427.23 million of general obligation bonds. The sale consisted of $281.92 million Series 2016A unlimited tax refunding bonds; $41.31 million of Series 2016B GO limited tax refunding bonds; $30 million of Series 2016C GO unlimited tax capital improvement green bonds; $20 million of Series 2016D GO limited tax capital improvement green bonds; and $50 million of Series 2016E GO unlimited tax alternative revenue source green bonds. The deal is rated AA-plus by S&P and triple-A by Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $507.3 million to $17.06 billion on Tuesday. The total is comprised of $7.80 billion of competitive sales and $9.26 billion of negotiated deals.
