New York’s Metropolitan Transportation Authority came to market Tuesday in one of the larger deals of the week, pricing for institutions $336 million of revenue bonds that were pulled June 19 due to market volatility.
Traders said a third of the deal went to retail Monday, though yields were higher than what the MTA received in its June retail order period. After pricing for retail June 19, RBC Capital Markets cancelled orders and postponed the deal.
Tuesday, yields ranged from 0.43% with a 4% coupon in 2014 to 4.73% with a 5% coupon in 2043. The bonds are callable at par in 2023. Bonds maturing in 2013 were offered via sealed bid.
Yields were lowered as much as three basis points from retail pricing Monday on bonds maturing before 2024. Yields were lowered one basis point on bonds maturing in 2039 but were raised two and three basis points on bonds maturing in 2038 and 2043.
Borrowers this week have come to market in quiet trading sessions.
“It’s flat and a holiday week,” a New York trader said. “Trades are going through OK but there’s just not a lot.”
This trader said he bought some bonds at the bottom of the selloff and has seen the market slowly recovering. The new few weeks will determine where the market goes from here.
“Supply is definitely the wild card,” he said. “Next week or the week after could be large supply weeks.”
In other primary deals, Goldman, Sachs & Co. priced $128.8 million of State Board of Regents for Utah University general revenue and refunding bonds, rated Aa1 by Moody’s and AA by Standard & Poor’s.
Yields ranged from 1.99% with a 5% coupon in 2019 to 4.33% with a 5% coupon in 2043. The bonds are callable at par in 2023.
Monday, yields on the Municipal Market Data scale ended mostly steady across the curve. The 10-year and 30-year yields were steady for the third session at 2.56% and 3.83%, respectively. The two-year was flat at 0.50% for the fourth session.
Yields on the Municipal Market Advisors scale ended mostly flat as well. The 10-year and 30-year yields were flat at 2.72% and 3.95%, respectively. The two-year was steady at 0.53% for the third session.
Treasuries were steady to one basis point stronger Tuesday afternoon. The two-year and 30-year yields fell one basis point each to 0.35% and 3.47%, respectively. The benchmark 10-year yield was flat at 2.49%.