Competitive issuance this week appears to have reached its highest volume in the past seven weeks and next week should top that level.
A preliminary reading estimates $2.5 billion was issued this week, a level not reached since the week ending May 2, went $2.8 billion was sold, according to data from The Bond Buyer and Ipreo. None of the larger competitive issuances that came to market were downsized.
Part of the reason competitive issuance is larger than prior weeks is because the $978 billion five-part Georgia general obligation deal came to market on Tuesday. Next week, the New York State Dormitory Authority plans a four-part $1.2 billion competitive deal, while the state of Washington will auction more than $1 billion in four parts.
The $978 billion Georgia general obligation bond sale that was auctioned on Tuesday was impressively bid for, with Bank of America Merrill Lynch winning the auction for the biggest $325.4 million chunk, according to market sources.
The bonds were quickly bought-up by investors, according to market participants.
Two other heavyweight competitive deals $400 million Port Authority of New York and New Jersey consolidated bonds and $200 million tax and revenue anticipation notes Houston auctioned also received heavy demand.
Overall, scheduled issuance this week was below last week's levels totaling an expected $6.4 billion compared to $9.3 billion last week, according to The Bond Buyer and Ipreo's data.
