The state of Maryland is expected to auction a two-part deal totaling $779.7 million of general obligation bonds in the competitive market Wednesday, the largest deal of the week.
The deal has the potential to move yields on the Municipal Market Data's triple-A scale lower if it's bid on aggressively, market participants in New York have said.
"There's no mystery with Maryland; it's a good name deal," a trader in Florida said. "It'll probably be a couple of basis points off the scale."
Citigroup held a retail order period for $100 million of Maryland GOs on Monday in the negotiated market. The deal was downsized to $50.4 million on Wednesday upon entering its institutional period.
Yields ranged from 0.56% with a 2% coupon in 2017 to 1.49% with a 5% coupon in 2020. The deals are rated Aaa by Moody's Investors Service, and AAA by both Standard & Poor's and Fitch ratings.
In the negotiated market, Citigroup will issue $192 million of East Baton Rouge Sewerage Commission LIBOR floating rate revenue bonds.
