Municipal bond market participants are looking at a smaller-than-average new issue calendar this week as Ipreo estimates volume at $4.03 billion. The slate is composed of $3.37 billion of negotiated deals and $661.4 million of competitive sales.
Secondary Market
U.S. Treasuries were little changed on Monday. The yield on the two-year Treasury was unchanged from 1.21% on Friday, while the 10-year Treasury yield was flat at 2.48%, and the yield on the 30-year Treasury bond increased to 3.07% from 3.06%.
Top-shelf municipal bonds closed a bit stronger on Friday. The 10-year benchmark muni general obligation yield declined two basis points to 2.33% from 2.35% on Thursday, while the yield on the 30-year GO decreased two basis point to 3.08% from 3.10%, according to the final read of Municipal Market Data's triple-A scale.
On Friday, the 10-year muni to Treasury ratio was calculated at 94.0% compared to 93.8% on Thursday, while the 30-year muni to Treasury ratio stood at 100.7%, versus 100.4%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,853 trades on Friday on volume of $10.26 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 58.08% of new issuance in the week ended Jan. 27, down from 58.48% in the previous week, according to
Some of the most actively traded issues by type in the week ended Jan. 27 were from Illinois and New York.
In the GO bond sector, the Chicago, Ill., 6s of 2038 were traded 126 times. In the revenue bond sector, the New York Transportation Development Corp.'s 5.25s of 2050 were traded 46 times. And in the taxable bond sector, the Chicago 7.045s of 2029 were traded 73 times.
Previous Week's Top Underwriters
The top negotiated and competitive underwriters of last week included Citigroup, Bank of America Merrill Lynch, Wells Fargo Securities, RBC Capital Markets and JPMorgan Securities, according to Thomson Reuters data.
In the week of Jan. 22 to Jan. 28, Citi underwrote $1.54 billion, BAML $713 million, Wells $649.1 million, RBC $622.3 million and JPM $383.3 million.
Primary Market
The biggest negotiated deal of the week is coming out of Oklahoma, when its Turnpike Authority sells $478.51 million of revenue bonds.
Wells Fargo Securities is expected to price the Series 2017A second senior revenue bonds and the Series 2017B refunding second senior revenue bonds on Wednesday after a one-day retail order period.
The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
Barclays Capital will price the New York City Municipal Water Finance Authority's $330 million of Fiscal 2017 Series DD water and sewer system second general resolution revenue bonds on Tuesday, after a one-day retail order period.
Piper Jaffray is expected to price the North Clackamas School District No. 12, Ore.'s $323.64 million Series 2017 general obligation bonds and Series 2017A GOs on Tuesday.
The issue is rated Aa1 by Moody's and AA-minus by S&P.
Citigroup is set to price the University of Colorado Hospital Authority's $300 million of Series 2017C-1 and Series 2017C-2 revenue put bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
In the competitive arena, the University of Maryland System is selling $115 million of Series 2017A tax-exempt auxiliary facility and tuition revenue bonds on Tuesday.
The system is also selling $52.26 million of Series 2017B tax-exempt auxiliary facility and tuition refunding revenue bonds
Both deals are rated Aa1 by Moody's and AA-plus by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $966.1 million to $8.61 billion on Monday. The total is comprised of $1.60 billion of competitive sales and $7.01 billion of negotiated deals.
