The primary market took all the focus in the municipal bond market Tuesday.
The largest deals on the calendar priced early in the week ahead of an early close Thursday and a full close of bond markets Friday.
Siebert, Brandford Shank & Co. priced $249 million Northeast Ohio Regional Sewer District wastewater improvement revenue bonds, rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s.
Yields ranged from 1.70% with a 2% in 2020 to 3.50% with a 5% coupon in 2043. The bonds are callable at par in 2023.
Barclays priced $227.3 million of Franklin County, Ohio, hospital facilities revenue refunding and improvement bonds on behalf of OhioHealth Corp. The bonds are rated Aa2 by Moody’s, AA-plus by Standard & Poor’s and AA by Fitch Ratings.
Yields ranged from 0.35% with a 3% coupon in 2014 to 4.15% with a 4% coupon in 2043. The bonds are callable at par in 2023. Yields were lowered as much as five basis points in repricing on maturities inside 2023.
Bank of America Merrill Lynch priced $139.5 million of Oklahoma City Economic Development Trust tax apportionment revenue bonds, rated Aa2 by Moody’s and AA by Standard & Poor’s.
The first pricing of $116.5 million of taxable bonds were priced at par with a 0.65% coupon in 2015 to 4.297% coupon in 2032. Bonds maturing in 2014 were offered via sealed bid. Spreads ranged from 40 basis points to 190 over the comparable Treasury yield.
The second series of $23 million of tax-exempts yielded 3.26% with a 5% coupon in 2032, 3.30% with a 5% coupon in 2033, and 3.35% with a 5% coupon in 2034. The bonds are callable at par in 2020.
Raymond James priced $106.8 million of Klein, Texas, Independent School District refunding bonds, rated triple-A with a guarantee from the Texas Permanent School Fund and an underlying rating of Aa1 by Moody’s and AA by Standard & Poor’s.
Yields on the first series, $79.3 million of unlimited tax schoolhouse and refunding bonds guaranteed by the PSF, ranged from 0.20% with a 2% coupon in 2013 to 3.85% with a 3.7% coupon in 2043. The bonds are callable at par in 2023.
Yields on the second series, $27.5 million of unlimited tax refunding bonds not backed by the PSF, ranged from 0.82% with a 4% coupon in 2017 to 2.77% with a 5% coupon in 2027. The bonds are callable at par in 2023.
JPMorgan priced $103.6 million of University of Arizona Board of Regents system revenue bonds, rated Aa2 by Moody’s and AA by Standard & Poor’s.
Yields on the first series of $68.7 million ranged from 0.70% with a 3% coupon in 2016 to 4.20% with a 4.125% coupon in 2048. The bonds are callable at par in 2023.
Yields on the second series of $34.9 million ranged from 0.29% with a 2% coupon in 2013 to 4.20% with a 4.125% coupon in 2048. The bonds are callable at par in 2023.
With limited primary pricing wires released into the market, muni traders said Tuesday’s activity was on par with Monday’s low trading volume.
“I’m hearing Puerto Rico is cheaper but I got out of the market a while ago,” a Chicago trader said. “It’s the end of the month and quarter and it’s also tax time.”
“It’s very slow,” a New Jersey trader said. “The market is flat. There is not a whole lot going on.” He added the market wasn’t focused on any deals, as the calendar is relatively small.
In the secondary market, trades compiled by data provider Markit showed mostly weakening.
Yields on Philadelphia Hospital and Higher Education Facilities Authority 5.625s of 2042 jumped five basis points to 4.33% and Puerto Rico 5.5s of 2047 jumped two basis points to 5.84%.
Yields on New York City 5s of 2033 and California State Public Works Board 5s of 2031 rose one basis point each to 3.22% and 3.70%, respectively.
Still other trades were stronger. Yields on Bulloch County, Ga., Development Authority 4s of 2022 dropped four basis points to 2.63% while California’s Golden State Tobacco Securitization Corp. 5.125s of 2047 slid one basis point to 5.93%.
Municipal bond market scales ended mostly steady Tuesday after a mixed session Monday.
Yields on the Municipal Market Data triple-A GO scale ended flat to one basis point weaker. The 10-year yield closed steady at 1.94% for the third session while the 30-year yield increased one basis point to 3.11%. The two-year finished flat at 0.31% for the 26th consecutive session.
Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended steady to one basis point weaker. The 10-year and 30-year yields finished steady at 1.99% and 3.20%, respectively. The two-year held at 0.33% for the 21st session.
Treasuries were choppy. After posting losses Tuesday morning, the market ended mostly firmer by the end of the day. The benchmark 10-year yield and the 30-year yield fell one basis point each to 1.91% and 3.13%, respectively. The two-year yield rose one basis point to 0.26%.
While markets seem relatively quiet so far this week, ratios have risen since the beginning of the month as munis underperformed Treasuries and became relatively cheaper. Muni to Treasury ratios are very close to or above 100% across the curve.
The five-year muni yield to Treasury yield ratio climbed to 113% on Tuesday from 101.3% on March 1. It as risen from 110.3% in just the past week.
The 10-year ratio spiked up to 101.6% on Tuesday from 96.2% at the beginning of the March. It is flat week over week.
And the 30-year ratio jumped to 99.4% from 94.8% on March 1. It has also risen from 98.4% last week.