The four largest deals of the week came to market Tuesday cheaper than where they priced on Monday as a weakening Treasury market and flood of supply forced issuers to raise yields.

With Hawaii, New Jersey, and Massachusetts all issuing bonds for institutional investors, the increased supply and rising Treasury yields forced the overall market weaker.

"New deals are coming cheap," a Chicago trader said. "No deals want inventory paper so they are priced to move."

In the primary market, Bank of America Merrill Lynch priced for institutions $806.8 million of Hawaii general obligation bonds, following a two-day retail order period. The bonds are rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.

Yields on the first series of $635 million ranged from 1.10% with a 5% coupon in 2018 to 4.16% with a 4% coupon and 4.00% with a 5% coupon in a split 2033 maturity. The bonds are callable at par in 2023.

Yields were lowered six basis points in institutional pricing on bonds maturing in 2018 but raised as much as nine basis points on longer-maturing bonds. Yields had already been raised one and two basis points on bonds maturing beyond 2021 from the first retail order period.

The second series of $35.6 million yielded 0.16% with a 5% coupon in 2014.

The third series of $58.6 million yielded 0.36% with 3% and 5% coupons in a split 2015 maturity. Yields were lowered one basis point in institutional pricing.

The fourth series of $27 million yielded 0.57% with 3% and 5% coupons in a split 2016 maturity.

Yields on the fifth series of $50.6 million ranged from 0.85% with a 3% coupon in 2017 to 2.76% with 3% and 5% coupons in a split 2023 maturity. Yields were lowered six basis points in institutional pricing on bonds maturing in 2018 but raised as much as eight basis points further out on the curve. Yields had already been raised one and two basis points on bonds maturing between 2021 and 2023 from the first retail pricing.

B of A Merrill also priced $54.8 million of taxable GOs for Hawaii. The first pricing of $25 million was priced at par to yield from 1.95% in 2018 to 4.80% in 2033. The second series of $29.8 million were priced at par to yield from 1.95% in 2018 to 4.80% in 2033. Bonds in both series are callable at par in 2023.

B of A Merrill also priced for institutions $373.8 million of triple-A rated Massachusetts transportation fund revenue bonds for the accelerated bridge program. Yields ranged from 2.45% with a 5% coupon in 2023 to 4.45% with a 4.375% coupon and 4.13% with a 5% coupon in a split 2043 maturity. The bonds are callable at par in 2021. Yields were raised five basis points on bonds maturing in 2023.

Citi is expected to hold a second retail order period for $288.2 million of Massachusetts federal highway grant anticipation notes also for the accelerated bridge program. The bonds are rated Aa1 by Moody's, AAA by Standard & Poor's, and AA-plus by Fitch. Institutional pricing is expected Wednesday.

In retail pricing Monday, yields ranged from 0.52% with 3% and 4% coupons in a split 2016 maturity to 3.47% with a 4% coupon and 3.27% with 5% coupon in a split 2027 maturity. The bonds are callable at par in 2022. A second retail pricing is expected Tuesday followed by institutional pricing Wednesday.

B of A Merrill priced $462.6 million of New Jersey Economic Development Authority private activity bonds subject to the alternative minimum tax for the Goethals Bridge replacement project. The bonds are rated BBB-minus by Standard & Poor's and Fitch.

Yields ranged from 3.20% with a 5% coupon in 2020 to 5.85% with a 5.625% coupon in 2052. The bonds are callable at par in 2024.

On Monday, the triple-A Municipal Market Data scale ended steady after weakening on Friday. The 10-year and 30-year yields were flat at 2.46% and 4.06%, respectively. The two-year was steady for the fifth session at 0.34%.

Yields on the Municipal Market Advisors benchmark scale ended as much as one basis point weaker. The 10-year and 30-year yields were steady at 2.62% and 4.25%, respectively. The two-year was flat for the fourth session at 0.48%.

Treasuries continued to weaken Tuesday afternoon. The benchmark 10-year yield rose five basis points to 2.66% and the 30-year yield increased four basis points to 3.74%. The two-year was steady at 0.32%.

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