The municipal bond market will continue to see supply flood in, with several large deals set for Tuesday including the University of California and the New Jersey Turnpike's bond offerings.

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

The 10-year muni benchmark yield fell to 2.300% on Tuesday from the final read of 2.302% on Monday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield increased to 2.764% from 2.755%.

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

U.S. Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.84% from 1.83%, the 10-year Treasury yield gained to 2.40% from 2.39% and the yield on the 30-year Treasury decreased to 2.79% from 2.78%.

Top-rated municipal bonds finished weaker on Monday. The yield on the 10-year benchmark muni general obligation rose six basis points to 2.01% from 1.95% on Friday, while the 30-year GO yield gained eight basis points to 2.64% from 2.56%, according to the final read of MMD’s triple-A scale.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 84.3% compared with 82.2% on Friday, while the 30-year muni-to-Treasury ratio stood at 95.3% versus 92.4%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,429 trades on Monday on volume of $10.80 billion.

Primary market
Barclays Capital is set to price the Regents of the University of California’s $820.26 million of general revenue bonds for institutions after holding a one-day retail order period.

The $749.57 million of Series AY tax-exempts were priced for retail to yield from 1.51% with a 3% coupon in 2022 to 3.15% with a 3% coupon and 2.58% with a 5% coupon in a split 2037 maturity; a 2042 maturity was priced as 5s to yield 2.64%. No retail orders were taken in the 20+33-2036 maturities.

The $70.69 million of Series AZ taxable were priced for retail to yield from about 40 basis points over the comparable Treasury security in 2022 to 110 basis points over the comparable Treasury security in 2032, 80 basis points over the comparable Treasury security in 2037 and 90 basis points over the comparable Treasury security in 2042.

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

Loop Capital Markets is set to price the New Jersey Turnpike Authority’s $795 million of Series G turnpike revenue bonds.

The deal is rated A2 by Moody’s, A-plus by S&P and A by Fitch.

Since 2009, the Turnpike Authority has issued roughly $12.81 billion of bonds, with the most issuance before this year occurring in 2009 when it sold $2.49 billion of bonds. The authority did not come to market in 2011.

JPMorgan Securities is expected to price Allen County Ohio’s $724.15 million of Series 2017A&B tax-exempt and Series 2017C taxable hospital facilities revenue bonds for Mercy Health.

The deal is rated A2 by Moody’s, A-plus by S&P and AA-minus by Fitch.

Citigroup is expected to price the Virginia College Building Authority’s $479.7 million of educational facilities revenue refunding bonds foe the 21st Century College and Equipment programs.

The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.

Florida’s JEA is expected to be coming to market with $835 million of bond deals this week.

Wells Fargo Securities is set to price the JEA’s $450 million of Series 2017A water and sewer system revenue bonds and water and sewer system subordinate revenue bonds.

Goldman Sachs is expected to price the JEA’s $385 million of Series 2017B electric system revenue bonds and electric system subordinate revenue bonds.

In the competitive arena on Tuesday, the West Virginia Economic Development Authority is selling $142.39 million of Series 2017 lottery refunding revenue bonds.

The deal is rated A1 by Moody’s and AAA by S&P.

The Florida Department of Transportation is selling $138.24 million of Series 2017A turnpike revenue refunding bonds.

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

Bond Buyer 30-day visible supply at $21.39B
The Bond Buyer's 30-day visible supply calendar decreased $2.08 billion to $21.39 billion on Tuesday. The total is comprised of $3.58 billion of competitive sales and $17.81 billion of negotiated deals.

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.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.
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.