Municipal bond traders were awaiting the week's new issues, topped by the New York State Dormitory Authority's $1.17 billion of sales tax revenue bonds.
Secondary Market
Treasury prices were lower on Tuesday, with the yield on the two-year Treasury note rising to 0.71% from 0.70% on Monday, while the 10-year yield rose to 2.39% from 2.37% and the 30-year yield increased to 3.13% from 3.10%.
The yield on the 10-year benchmark muni general obligation finished flat on Monday from 2.29% on Friday, while the yield on the 30-year GO was steady from 3.25%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Monday at 96.6% versus 99.8% on Friday, while the 30-year muni to Treasury ratio stood at 104.7% compared to 106.9%, according to MMD.
Primary Market
Morgan Stanley is slated to price DASNY's $1.17 billion of Series 2015A New York State sales tax revenue bonds for retail investors ahead of the institutional pricing on Wednesday. The issue is rated triple-A by Standard & Poor's and AA-plus by Fitch Ratings.
Morgan Stanley is also set to price the Port of Seattle, Wash.'s $592 million of intermediate lien revenue bonds. The offering consists of Series 2015A non-AMT, Series 2015B non-AMT and Series C AMT bonds. The issue is rated A1 by Moody's Investors Service and A-plus by S&P and Fitch.
In the competitive arena, the Metropolitan Government of Nashville and Davidson County, Tenn., is scheduled to sell $348 million of Series 2015C general obligation improvement bonds. The deal is rated Aa2 by Moody's and AA by S&P.
The city last sold comparable bonds competitively on March 4, 2008, when Merrill Lynch won $308 million of Series 2008 GOs with a true interest cost of 4.76%.
Since 1995, Nashville and Davidson County has issued roughly $5.31 billion of general obligation debt. The years of 2010 and 2013 saw the most issuance, with roughly $892 million and $620 million, respectively. The music city and Davidson counties did not come to market with GO issuance in 1998, 2000, 2009 or 2014.
Also on Tuesday, the Miami-Dade County School Board, Fla., will sell $200 million of Series 2015 GO school bonds. The issue is rated Aa2 by Moody's and A-plus by S&P.
The district last sold comparable bonds competitively on July 10, 2013, when JPMorgan won $109 million of Series 2013 GO school bonds with a TIC of 4.54%.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 31,620 trades on Monday on volume of $3.907 billion.
The most active bond, based on the number of trades, was the Lehigh County General Purpose Authority, Pa., Series 2015A hospital revenue 4 1/4s of 2045, which traded 166 times at an average price of 100.087, an average yield of 4.224%. The bonds were initially priced at 97.352 to yield 4.41%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $215.3 million to $12.80 billion on Tuesday. The total is comprised of $2.70 billion competitive sales and $10.10 billion of negotiated deals.
