The municipal bond market was gearing up to take on the week's new issue supply, which totals slightly over $3 billion.
Secondary Market
U.S. Treasuries were slightly lower on Tuesday. The yield on the two-year Treasury rose to 1.04% from 1.03% on Monday, while the 10-year Treasury yield rose to 2.25% from 2.23% and the 30-year Treasury bond yield increased to 3.00% from 2.98%.
Municipal bonds finished stronger on Monday. The yield on the 10-year benchmark muni general obligation fell six basis points to 1.87%, while the 30-year yield dropped six basis points to 2.77%, according to the final read of Municipal Market Data's triple-A scale, which took into account the January roll conversion.
The 10-year muni to Treasury ratio was calculated on Monday at 83.5% compared with 84.4% on Thursday, while the 30-year muni to Treasury ratio stood at 92.8% versus 93.5%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,932 trades on Monday on volume of $5.84 billion.
Primary Market
This week's calendar totals $3.33 billion, consisting of $2.86 billion of negotiated deals and $472.8 million of competitive sales.
In the competitive arena, the Massachusetts School Building Authority will sell $150 million of Series 2016A senior dedicated sales tax bonds on Wednesday. The deal is rated Aa2 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
On the short-term slate, Colorado will sell by competitive bid $339 million of Series 2015B education loan program tax and revenue anticipation notes. The TRANS, which are selling on Wednesday, are due June 29.
On the negotiated slate, William Blair & Co. is set to price the Allen Independent School District, Texas' $159 million of Series 2016 unlimited tax school building bonds on Tuesday. The bonds are backed by the Permanent School Fund guarantee program and are rated triple-A by Moody's and S&P.
Bank of America Merrill Lynch is slated to price the city of Tallahassee, Fla.'s $150 million of Series 2016A project healthcare facilities revenue bonds for Tallahassee Memorial Healthcare Inc. The issue is rated Baa1 by Moody's.
The Board of Regents of the University of Texas will be coming to market on Thursday with two negotiated deals totaling $450 million.
Bank of America Merrill Lynch is set to price the $250 million of Series 2016A taxable revenue financing system bonds and the $200 million of Series 2016B revenue financing system green bonds. Both series are rated triple-A by Moody's, S&P and Fitch.
Also on the negotiated calendar, BAML is expected to price the South Carolina Public Service Authority's $382 million of revenue obligation Series 2016A tax-exempt refunding bonds on Thursday.
Stifel is set to price Orange County, Calif.'s $334.31 million of taxable Series 2016A pension obligation bonds on Thursday. The issue is rated AA by S&P and Fitch.
And JPMorgan Securities is set to price on Thursday the KU Central Development Corp.'s $333.18 million of Series 2016 lease revenue bonds, which are being issued through the Wisconsin Public Finance Authority. The issue is rated Aa2 by Moody's.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $363.1 million to $8.69 billion on Tuesday. The total is comprised of $4.44 billion competitive sales and $4.25 billion of negotiated deals.
