Municipal bond market participants were keeping a wary eye on yields as the holiday-shortened trading week was quickly passing by.
Secondary Market
U.S. Treasuries were narrowly mixed on Tuesday. The yield on the two-year rose to 1.09% from 1.08% on Monday, the 10-year Treasury dropped to 2.30% from 2.34%, while the yield on the 30-year Treasury bond decreased to 2.98% from 3.01%.
Top-rated municipal bonds finished weaker on Monday. The yield on the 10-year benchmark muni general obligation rose four basis points to 2.30% from 2.26% on Friday, while the yield on the 30-year increased three basis points to 3.06% from 3.03%, according to the final read of Municipal Market Data's triple-A scale. Yields on shorter maturities were steady to five basis points higher.
Since Election week, benchmark muni yields have risen as much as 60 basis points. On Monday, Nov. 7, the 10-year muni yield stood at 1.70% while the 30-year yield was at 2.53%.
On Monday, the 10-year muni to Treasury ratio was calculated at 98.6% compared to 96.9% on Friday, while the 30-year muni to Treasury ratio stood at 101.8% versus 100.5%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 45,449 trades on Monday on volume of $10.73 billion.
Primary Market
This week's $1.04 billion holiday calendar is composed of $897 million of negotiated bond deals and $145 million of competitive bond sales.
JPMorgan Securities is expected to price the State of New York Mortgage Agency's $97.62 million of homeowner mortgage revenue alternative minimum tax and non-AMT bonds for institutional investors on Tuesday.
The SONYMA deal is rated Aa1 by Moody's Investors Service.
Bank of America Merrill Lynch is expected to price the Pottsville Hospital Authority, Pa.'s $50 million of Series 2016B hospital revenue bonds for the Lehigh Valley Health Network. The deal is rated A1 by Moody's and A-plus by S&P Global Ratings.
Several deals which were expected to price last week are now on the day-to-day calendar after post-election market volatility rocked the market.
Among the deals waiting to be priced are New York's Tobacco Settlement's $1.02 billion of bonds, the Public Hospital District No. 1 of King County, Wash.'s $186 million of limited tax general obligation bonds, Montgomery County Municipal Utility District No. 13, Texas' $141 million of road and limited tax refunding bonds and Mississippi's $223 million of GO refunding bonds.
There are no competitive deals larger than $100 million on this week's calendar.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.82 billion to $9.88 billion on Tuesday. The total is comprised of $3.52 billion of competitive sales and $6.36 billion of negotiated deals.
