Municipal bond traders are prepped for the week’s new supply to light up their screens on Tuesday, with the retail pricing of the big New York Dormitory deal on tap.
Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.37% from 1.33% on Monday, the 10-year Treasury yield gained to 2.18% from 2.14% and the yield on the 30-year Treasury bond increased to 2.73% from 2.70%.
Top-rated municipal bonds finished stronger on Monday. The yield on the 10-year benchmark muni general obligation fell one basis point to 1.85% from 1.86% on Friday, while the 30-year GO yield decreased two basis points to 2.67% from 2.69%, according to the final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni to Treasury ratio was calculated at 86.7%, compared with 86.8% on Friday, while the 30-year muni to Treasury ratio stood at 99.1% versus 99.2%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 38,367 trades on Monday on volume of $7.26 billion.
The upcoming calendar is estimated at $6.82 billion, composed of $5.16 billion of negotiated deals and $1.66 billion of competitive sales.
Action kicks off on Tuesday when Morgan Stanley prices the Dormitory Authority of the State of New York’s $1.72 billion of Series 2017A general purpose state personal income tax revenue bonds for retail investors.
The DASNY deal, which is set to be priced for institutions on Wednesday, is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings.
Also on Tuesday, Wells Fargo Securities is expected to price the Missouri Health and Educational Facilities Authority’s $375 million of taxable educational facilities revenue bonds for Washington University.
The deal is rated Aa1 by Moody’s.
Since 2007 the authority has sold roughly $8.52 billion of securities, with the highest issuance in 2008 when it sold nearly $2 billion. The issuance was lowest in 2007 when it sold $255 million.
In the competitive arena on Tuesday, the city of Los Angeles, Calif., will sell $169.41 million of general obligation bonds in two separate offerings.
The sales consist of $86.59 million of Series 2017A taxable GOs and $82.82 million of Series 2017B tax-exempt refunding GOs.
The deals are rated Aa2 by Moody’s, AA by S&P and AA-minis by Fitch Ratings.
Richmond, Va., is selling $226.73 million of GOs in two separate offerings.
The sales consist of $182.8 million of Series 2017B GO public improvement and refunding bonds and $43.93 million of Series 2017C taxable public improvement refunding bonds.
The deals are rated Aa2 by Moody’s and AA-plus by S&P and Fitch.
The New York City Municipal Water Finance Authority is selling $164 million of Fiscal 2018 Series AA water and sewer system second general resolution revenue bonds.
The state of Utah is selling $146.33 million of Series 2017 GOs.
The deal is rated triple-A by Moody’s, S&P and Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $344.1 million to $8.53 billion on Tuesday. The total is comprised of $2.25 billion of competitive sales and $6.29 billion of negotiated deals.