Total potential volume for this week is $8.90 billion, slightly less than last week's issuance of $9.29 billion, but better than the average week this year, according to Ipreo and The Bond Buyer. This is the second heaviest week of supply for the month of June.
Though issuance has picked up a bit in the past few weeks, "year-to-date municipal market issuance is 25% lower than last year's at $115 through the end of May," according to data from Thomson Reuters. Last year the year-to-date total was $153 billion.
A total of $344 billion of bonds were sold in the primary market last year. Janney Montgomery predicts new issuance for this year to be lighter, coming in between $250 billion and $275 billion.
Ramirez & Co. will bring $1.4 billion of Los Angeles County tax and revenue anticipation notes to the market on Thursday, the largest deal of the week. The deal received a MIG 1 rating from Moody's Investors Service, SP-1-plus from Standard and Poor's and F1-plus from Fitch Ratings.
Other large deals in the negotiated market this week include $631 million of triple-A rated Texas Public Finance Authority refunding general obligation bonds and $500 million of double A-plus rated GOs from the commonwealth of Massachusetts.
In the competitive market, the New York State Dormitory Authority is expected to sell $1.1 billion of revenue bonds Tuesday and the state of Washington will auction $1 billion of double A-plus rated general obligation bonds on Wednesday.
Treasuries strengthened Monday morning, with the 30-year yield falling two basis points to 3.43% and the 10-year benchmark slipping one basis point to 2.61%. The two-year yield was unchanged at 0.46% from Friday's market close.
