Municipal market participants are more than ready for deals to start hitting the screens, in what is expected to be one of the busiest days the primary has seen in a while, in one of the busiest weeks of the year so far.
Secondary Market
Treasuries were weaker on Tuesday. The yield on the two-year Treasury increased to 0.70% from 0.67% on Monday, the 10-year Treasury yield rose to 1.56% from 1.49% and the yield on the 30-year Treasury bond increased to 2.31% from 2.23%.
Top-rated municipal bonds were weaker on Monday. The yield on the 10-year benchmark muni general obligation rose two basis points to 1.42% from 1.40% on Friday, while the yield on the 30-year muni increased one basis point to 2.13% from 2.12%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 94.9% on Monday compared to 91.2% on Friday, while the 30-year muni to Treasury ratio stood at 95.2% versus 94.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 30,172 trades on Monday on volume of $11.95 billion.
Primary Market
The nearly $12 billion week will kick off Tuesday, as the market expects more than 10 deals of at least $100 million to price, including three of the five largest deals of the week.
Goldman, Sachs is expected to price the New York City's $800 million of general obligation bonds for institutions on Tuesday, following a two-day retail order period.
The Fiscal 2017 Series A Subseries A-1 GOs were priced for retail to yield from 0.68% with 3% and 5% coupons in a split 2019 maturity to 2.739% with a 2.625% coupon in 2040. No retail orders were taken in the 2030 through 2033 and 2037 through 2038 maturities. The 2017 maturity was offered as a sealed bid.
The deal is rated Aa2 by Moody's Investors Service and AA by S&P Global Ratings and Fitch Ratings.
The Big Apple will also issue two competitive sales of taxable GO bonds totaling $250 million.
The state of Minnesota will sell five separate competitive sales totaling almost $788 million on Tuesday. The Land of 10,000 Lakes is expected to sell $301.2 million of GO state various purpose refunding bonds, $264.25 million of GO state various purpose bonds, $215 million of GO state trunk highway bonds, and $7.5 million of GO taxable state various purpose bonds. All of the deals are rated Aa1 by Moody's and AA-plus by S&P.
Since 2006, Minnesota has issued $12.43 billion of securities with the largest issuance coming in 2010 when it sold $1.77 billion.
Goldman, Sachs is also expected to price the Board of Regents of the University of Texas' $350 million of system revenue financing bonds on Tuesday. The deal is rated triple-A by Moody's, S&P and Fitch.
Siebert Brandford Shank is slated to price the Pennsylvania Turnpike Commission's $314.28 million of oil franchise tax senior revenue refunding bonds on Tuesday. The deal is expected to consist of $199.19 million of series A of 2016 bonds that are rated Aa3 by Moody's and AA by Fitch, as well as $115.09 million of series B of 2015 bonds that are rated A2 by Moody's and A-plus by Fitch.
Ramirez is scheduled to price the city of San Antonio, Texas's $364 million on Tuesday.
Back in the competitive arena, the Plano Independent School District in Texas is on the docket to sell $257.2 million of unlimited tax school building bonds. The deal is backed by the permanent school fund guarantee program and is rated triple-A by Moody's and S&P.
The Miami-Dade County School District, Fla., is scheduled to competitively sell $200 million of general obligation school bonds. The deal is rated Aa3 by Moody's and A-plus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $656.2 million to $17.54 billion on Tuesday. The total is comprised of $5.80 billion of competitive sales and $11.74 billion of negotiated deals.
