The primary market got off to an early start Monday morning with two large issuers, Connecticut and Florida's JEA, pricing bonds for retail investors.
Outside the primary market, traders said the secondary was quiet. "It's dead this morning," a New York trader said. "It's vacation time."
In new deals, M.R. Beal & Co. priced its first day of retail of $350 million Connecticut general obligation bonds. A second retail order period is expected Tuesday followed by institutional pricing Wednesday. The bonds are rated Aa3 by Moody's Investors Service and AA by Standard & Poor's, Fitch Ratings, and Kroll Bond Ratings.
The first series of $115 million of GO SIFMA index bonds were not offered for retail.
Yields on the second series of $235 million of GOs ranged from 0.47% with a 4% coupon in 2015 to 4.50% with a 4.375% coupon in 2033. Bonds maturing in 2014, 2026, 2027, and between 2029 and 2032 were not offered for retail. The bonds are callable at par in 2023.
RBC Capital Markets priced for retail $193.6 million of JEA electric system bonds. Institutional pricing is expected Tuesday.
The first series of $32.7 million of revenue bonds is rated Aa2 by Moody's Investors Service, AA-minus by Standard & Poor's, and AA by Fitch Ratings. Bonds were not offered for retail.
The second series of $160.9 million of subordinated revenue bonds is rated Aa3 by Moody's, A-plus by Standard & Poor's, and AA by Fitch.
Yields ranged from 0.68% with a 3% coupon in 2015 to 5% priced at par in 2035. Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2018 except for those maturing in 2019.
Connecticut and JEA kick off a week of lighter expected issuance. Taking out $5.5 billion of California short-term revenue anticipation notes, the long-term muni market can expect $4.26 billion, down from last week's revised $6.39 billion. In negotiated deals, $3.78 billion is expected, down from last week's revised $4.12 billion. On the competitive calendar, $484.2 million is set for auction, down from last week's revised $2.27 billion.
Friday, yields on the Municipal Market Data scale ended steady. The 10-year yield closed unchanged at 2.72% for the second session and the 30-year was steady at 4.28% for the fourth session. The two-year finished flat at 0.43% for the 18th consecutive session.
Yields on the Municipal Market Advisors scale were mostly flat to one basis point lower on longer maturing bonds. The two-year yield was unchanged at 0.54% for the third session and the 10-year yield finished steady at 2.90% for the fourth session. The 30-year yield slipped one basis point to 4.33%.
Treasuries were mostly steady Monday morning. The two-year and benchmark 10-year yields were flat at 0.31% and 2.58%, respectively. The 30-year yield slid one basis point to 3.63%.