Investors' opinions conflict over how aggressively bid this week's competitive slate will be, especially the largest deal $116.51 million Lynchburg, Va., general obligation bonds, expected Tuesday.
The Lynchburg GOs earned ratings of Aa2 from Moody's Investors Service, AAA from Standard & Poor's and AA-plus from Fitch Ratings. A trader in Chicago said, "Deals on the competitive side will be aggressively bid this week, as they were all year," he said.
Dan Heckman, senior fixed income strategist at U.S. Bank, said in an interview that he's been seeing competitive issuances come to market "priced fairly."
"I don't think the issuers are being too aggressive here," he said. "We saw some being priced aggressively a week or so ago, and I don't think they went too well."
Morgan Stanley will price $235.3 million of Indiana Finance Authority first lien wastewater utility revenue bonds on Tuesday. The deal is rated Aa by Moody's Investors Service, AA by Standard and Poor's and A by Fitch Ratings.
Wells Fargo Securities will price for institutions Tuesday $201.4 million Nebraska Public Power District GOs, following a retail order period Monday. The deal is rated A1 by Moody's and A by S&P and A-plus by Fitch.
Citigroup Global Markets will price for retail Tuesday $200.8 million of Fairfax County, Va., facilities revenue bonds. The deal is expected to be priced for institutions Wednesday and is rated Aa1 by Moody's and AA-plus by S&P.
Rice Financial Products continues its retail order period for $200 million of Connecticut GOs. The deal is expected to be priced for institutions Wednesday and is rated Aa3 by Moody's, and AA by S&P, Fitch and Kroll Bond Rating Agency.
Citigroup will price $125 million of Board of Governors of the University of North Dakota revenue bonds. The bonds mature serially from 2015 to 2034 with a term bond in 2039. The deal is rated Aa3 by Moody's and A by S&P.
Goldman Sachs will price for retail Tuesday $122.1 million of Kentucky Turnpike Authority economic development road revenue refunding bonds. The deal is expected to be priced for institutions Wednesday and is rated Aa2 by Moody's, AA-plus by S&P and A-plus by Fitch.
Raymond James & Associates will bring $109.7 million of Metropolitan Government of Nashville and Davidson City, Tenn., electric revenue bonds. The bonds mature serially from 2015 to 2039 and are rated AA-plus by both S&P and Fitch.
Munis weakened Tuesday morning, with yields on bonds maturing in six-years climbing as much as two basis points, and bonds maturing beyond 2022 jumping as much as three basis points. Yields on the short end of the curve are under review, according to the Municipal Market Data's triple-A scale.
Treasuries weakened Tuesday morning, with the 10-year benchmark climbing four basis points to 2.65% and the 30-year yield jumping three basis points to 3.47%. The two-year note inched up one basis point to 0.44%.
