Municipal bond traders are ready for new issuance, but it remains to be seen if all scheduled deals will price as planned as a major winter storm blankets the northeast. Market participants who braved the weather to get into their offices will be waiting to see if any more deals get postponed due to weather-related issues.
Secondary Market
U.S. Treasuries were mostly steady on Tuesday morning. The yield on the two-year Treasury rose to 1.38% from 1.37% on Monday, while the 10-year Treasury yield was flat at 2.61%, and the yield on the 30-year Treasury bond was unchanged from 3.19%.
Top-shelf municipal bonds finished weaker on Monday. The 10-year benchmark muni general obligation yield was two basis points higher to 2.49% from 2.47% on Friday, while the yield on the 30-year GO increased one basis point to 3.25% from 3.24%, according to a final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni to Treasury ratio was calculated at 95.4%, compared with 95.7% on Friday, while the 30-year muni to Treasury ratio stood at 101.8%, versus 102.3%, according to MMD.
Primary Market
Muni bond traders are set to see $5.81 billion of new deals hit the market this week, with issuance expected to start hitting screens on Tuesday. However, the calendar for Tuesday is already $1.84 billion lighter than expected, after it was announced on Monday that five competitive sales planned for the Empire State Development Corp. have been delayed until Thursday.
In the competitive arena, Boulder Valley School District No. RE-2, Colo., is set to sell roughly $284.88 million in two separate deals. The general obligation and GO refunding bonds are rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
In the negotiated sector, RBC Capital Markets is expected to price the Ohio Water Development Authority's $400 million of state water pollution control loan fund revenue bonds. The deal is rated triple-A by Moody's and S&P.
Citigroup is scheduled to price the California Health Facilities Financing Authority's $287 million of revenue bonds for El Camino Hospital. The deal is expected to mature serially from 2020 through 2037 and include term bonds in 2042 and 2047. The deal is rated A1 by Moody's and A-plus by S&P.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,888 trades on Monday on volume of $7.869 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $220.8 million to $11.03 billion on Tuesday. The total is comprised of $5.29 billion of competitive sales and $5.74 billion of negotiated deals.
