Municipal bonds were little changed on Tuesday, as U.S. Treasuries richened slightly and equities ended mixed.
Muni yields richened or cheapened by up to one basis point, depending on the scale. UST yields were up to one basis point firmer.
Munis are in a holding pattern ahead of the consumer price index report, which is set to be released Wednesday, according to Cooper Howard, director of fixed income strategy at Schwab. If the report shows hotter inflation, it could influence the Federal Open Market Committee
The market has told "a very continual story of just elevated supply, and every week tends to be a very big week in terms of supply, at least compared to historical averages," Howard said. "We've seen relative ratios, they've moved back higher a little bit, so nothing out of the norm. But it is something to continually watch because if you do start to see yields lagging relative to treasuries, then I would expect that that would be a sign that the market's not absorbing it as well."
New-issue market
In the primary market Tuesday, Jefferies priced for the California Health Facilities Financing Authority (A1/A+/AA-/) $1.14 billion of Sutter Health revenue bonds, with 5s of 11/2027 at 2.30%, 5s of 2031 at 2.73%, 5s of 2036 at 3.46%, 5s of 2042 at 4.03%, 5s of 2046 at 4.30%, 4.5s of 2051 at 4.643% and 5s of 2056 at 4.77%, callable 11/2036, except the 11/2036 maturities, which are callable 5/2036.
BofA Securities priced for Atlanta (/AA/AA/AA+) $1.06 billion of airport general revenue bonds. The first tranche, $310.84 million of green Series 2026 A-1 bonds, saw 5s of 7/2027 at 2.52%, 5s of 2031 at 2.86%, 5s of 2036 at 3.35%, 5s of 2041 at 3.92%, 5s of 2046 at 4.27%, 5s of 2051 at 4.56% and 5.25s of 2056 at 4.67%, callable 7/2035.
The second tranche, $71.85 million of Series 2026A-2 bonds, saw 5s of 7/2027 at 2.52%, 5s of 2031 at 2.86%, 5s of 2036 at 3.35%, 5s of 2041 at 3.92%, 5s of 2046 at 4.27%, 5s of 2051 at 4.56% and 5.25s of 2056 at 4.67%, callable 7/2035.
The third tranche, $361.25 million of green taxable Series 2026B-1 bonds, saw 5s of 2027 at 2.85%, 5s of 2031 at 3.28%, 5s of 2036 at 3.77%, 5.25s of 2041 at 4.23%, 5.25s of 2046 at 4.53%, 5.5s of 2051 at 4.69% and 5.5s of 2056 at 4.78%, callable 7/2035.
The fourth tranche, $319.27 million of taxable Series 2026B-2 bonds, saw 5s of 2027 at 2.85%, 5s of 2031 at 3.28%, 5s of 2036 at 3.77%, 5.25s of 2041 at 4.23%, 5.25s of 2046 at 4.53%, 5.5s of 2051 at 4.69% and 5.5s of 2056 at 4.78%, callable 7/2035.
Jefferies priced for the Los Angeles County Sanitation Districts Financing Authority (/AAA/AA/) $453.04 million of joint outfall system revenue bonds, with 5s of 10/2027 at 2.21%, 5s of 2031 at 2.54%, 5s of 2036 at 3.11%, 5s of 2041 at 3.66%, 5s of 2046 at 4.05%, 5s of 2051 at 4.33% and 5s of 2056 at 4.47%, callable 10/2036.
In the competitive market, Miami-Dade County, Florida, (Aa2/AA//) sold to BofA Securities $444.94 million of capital asset acquisition special obligation bonds, with 5s of 4/2027 at 2.52%, 5s of 2031 at 2.95%, 5s of 2036 at 3.48%, 5s of 2041 at 3.99%, 5s of 2046 at 4.35%, 5s of 2051 at 4.63% and 5s of 2056 at 4.80%, callable 4/2035.
