The municipal bond market is returning to work on Tuesday after the long holiday weekend. Buyers and traders will see about $3.35 billion of new deals hit the screens, consisting of $2.36 billion of negotiated deals and $986.4 million of competitive sales.

Secondary market
The MBIS municipal non-callable 5% GO benchmark scale was stronger in early trading.

The 10-year muni benchmark yield fell to 2.345% on Tuesday from the final read of 2.368% on Friday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield declined to 2.828% from 2.851%.

The MBIS benchmark index is updated hourly on the Bond Buyer Data Workstation.

U.S. Treasuries were mixed in early activity on Tuesday. The yield on the two-year Treasury was unchanged from 2.00% on Friday, the 10-year Treasury yield dropped to 2.53% from 2.55% and the yield on the 30-year Treasury decreased to 2.83% from 2.85%.

Top-rated municipal bonds finished unchanged on Friday. The yield on the 10-year benchmark muni general obligation was steady from 2.12% on Thursday, while the 30-year GO yield was flat from 2.71%, according to the final read of MMD’s triple-A scale.

On Friday, the 10-year muni-to-Treasury ratio was calculated at 83.2% compared with 83.8% on Thursday, while the 30-year muni-to-Treasury ratio stood at 95.0% versus 94.6%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 35,999 trades on Friday on volume of $9.31 billion.

Prior week's actively traded issues
Revenue bonds comprised 55.91% of new issuance in the week ended Jan. 12, down from 56.45% in the previous week, according to Markit. General obligation bonds made up 38.41% of total issuance, up from 37.83%, while taxable bonds accounted for 5.68%, down from 5.72% a week earlier.

Some of the most actively traded bonds by type in the week were from California, New Jersey and Pennsylvania issuers.

In the GO bond sector, the Santa Clara Unified School District., Calif., 3s of 2036 traded 24 times. In the revenue bond sector, the New Jersey Economic Development Authority 4s of 2047 traded 47 times. And in the taxable bond sector, the Pennsylvania Commonwealth Financing Authority 3.864s of 2038 traded 71 times.

Primary market
On Tuesday, the Sheldon Independent School District, Texas, is competitively selling $100.71 million of Series 2018 unlimited tax school building and refunding bonds.

The deal is backed by the Permanent School Fund guarantee program.

On Wednesday, Goldman Sachs is set to price the Sales Tax Securitization Corp.’s $898.07 million of Series 2018A sales tax securitization bonds.

The Chicago deal is rated AA by S&P Global Ratings, and AAA by Fitch Ratings and Kroll Bond Rating Agency.

JPMorgan Securities is expected to price the Orlando Utilities Commission, Fla.’s $150.18 million of Series 2018A utility system revenue bonds.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P and Fitch.

Loop Capital Markets is expected to price the Pasadena Independent School District, Texas’ Series 2018 unlimited tax school buikding bonds.

The deal is backed by PSF and rated triple-A by Moody’s and S&P.

In the competitive arena on Wednesday, the University of Kentucky is selling $210 million of Series 2018A general receipt bonds.

The deal is rated Aa2 by Moody’s and AA by S&P.

Bond Buyer 30-day visible supply at $6.90B
The Bond Buyer's 30-day visible supply calendar increased $413.7 million to $6.90 billion on Tuesday. The total is comprised of $2.63 billion of competitive sales and $4.27 billion of negotiated deals.

Previous week's top underwriters
The top municipal bond underwriters of last week included Bank of America Merrill Lynch, RBC Capital Markets, Citigroup, JPMorgan Securities and Stifel, according to Thomson Reuters data.

In the week of Jan. 7 to Jan. 13, BAML underwrote $809.9 million, RBC $482.3 million, Citi $383.0 million, JPMorgan $366.1 million, and Stifel $249.4 million.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.