Georgia is expected to auction a five-part general obligation deal totaling about $978 million on Tuesday, the largest deal of the week.
"With Georgia being a competitive deal, it might push lower coupon structures," a trader based in North Carolina said. "That may be what will drive investors into the Texas deal potentially. I haven't seen Texas' structure yet."
The deal received triple-A ratings from Moody's Investor Services, Standard and Poor's and Fitch Ratings.
The Texas Department of Transportation is scheduled to sell $900 million of triple-A rated GOs and refunding bonds this week as well, a deal that some market participants predict will be priced aggressively.
"There will probably be pretty good reception for both deals depending on price and market conditions," the North Carolina trader said. "It comes down to structure."
A trader in Chicago said he thinks the Texas bonds will be expensive, but does not believe this will be an issue because the reinvestment period has started.
"Buyers have cash from June 1 coupon payments and bonds maturing, and many investors received payments on June 15 too," he said.
Citigroup Global Markets will issue $590 million of Oregon tax anticipation notes on Tuesday. The deal is rated MIG 1 by Moody's, SP-1-plus by S&P and F1-plus by Fitch.
Loop Capital Markets will bring $555 million of Chicago Transit Authority sales tax receipts revenue bonds on Wednesday. The deal is rated AA by S&P and AA by Kroll Bond Rating Agency.
The Port Authority of New York & New Jersey will sell $400 million of consolidated bonds. The deal is rated Aa3 by Moody's and AA-minus by both S&P and Fitch.
"I'm interested in seeing where the MTA deal's spreads will end up," a trader in North Carolina said. "There are a lot of smaller deals this week that I will be keeping an eye on to see where they place as well."
Muni yields were steady across the curve, according to the Municipal Market Data's triple-A scale.
Treasuries were mostly steady midday Monday. The 10-year benchmark and the 30-year yields were unchanged at 2.60% and 3.40%, respectively, from Friday's market close. The two-year note rose one basis point to 0.46%.
