The municipal bond market is gearing up to see a hefty $11.4 billion new issue calendar hit the screens this week, headlined by two $1 billion-plus deals from New York issuers.
Secondary Market
Treasuries were little changed on Monday. The yield on the two-year Treasury was unchanged from 0.79% on Thursday, the 10-year Treasury yield gained to 1.68% from 1.67% and the yield on the 30-year Treasury bond was flat from 2.39%.
Top-rated municipal bonds finished weaker on Friday. The yield on the 10-year benchmark muni general obligation rose four basis points to 1.49% from 1.45% on Thursday, while the yield on the 30-year rose five basis points to 2.20% from 2.15%, according to the final read of Municipal Market Data's triple-A scale.
On Friday, the 10-year muni to Treasury ratio was calculated at 89.2% compared to 90.0% on Thursday, while the 30-year muni to Treasury ratio stood at 92.0% versus 92.8%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 31,022 trades on Friday on volume of $13.99 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 51.47% of new issuance in the week ended Sept. 9, up from 50.49% in the previous week, according to
Some of the most actively traded securities by type were from California, Ohio and Illinois issuers. In the GO bond sector, the California 3s of 2046 were traded 65 times. In the revenue bond sector, the Hamilton County, Ohio 5s of 2046 were traded 33 times. And in the taxable bond sector, the Illinois 6.63s of 2035 were traded 21 times.
Previous Week's Top Underwriters
The top negotiated and competitive underwriters of last week included Citigroup, Bank of America Merrill Lynch, JPMorgan Securities, RBC Capita Markets and Wells Fargo Securities, according to Thomson Reuters data. In the week of Sept. 4-Sept. 10, Citi underwrote $902.8 million, BAML $712.6 million, JPMorgan $493.5 million, RBC $431.4 million and Wells Fargo $272 million.
Primary Market
The upcoming slate is composed of $9.37 billion of negotiated bond deals and $2.05 billion of competitive bond sales and New York issuers will dominate the calendar.
Goldman Sachs is expected to price the New York Metropolitan Transportation Authority's $1.06 billion of Hudson Rail Yards Trust obligation bonds on Wednesday. The deal is rated A2 by Moody's Investors Service.
The New York City Transitional Finance Authority is scheduled to hit the market with a total of $1.05 billion of negotiated and competitive offerings.
Ramirez & Co. is scheduled to price the TFA's $800 million of future secured subordinate bonds on Wednesday, following a two-day retail order period.
The TFA will sell two competitive sales of taxable future secured subordinate bonds on Wednesday -- one for $62.5 million and the other for $187.51 million.
Citigroup is set to price the New York Convention Center Development Corp.'s $416 million of hotel unit fee secured revenue bonds consisting of Series 2016A senior liens and Series 2016B subordinated liens on Tuesday. The Series A bonds are rated Aa3 by Moody's while the Series B bonds are rated A2 by Moody's.
Siebert Cisneros Shank is slated to price Connecticut's $964.32 million of special tax obligation bonds and special tax obligation refunding bonds for transportation infrastructure purposes on Tuesday, following a one-day retail order period.
The deal is rated Aa3 by Moody's, AA by S&P Global Ratings and AA-minus by Fitch Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.80 billion to $18.15 billion on Monday. The total is comprised of $4.08 billion of competitive sales and $14.06 billion of negotiated deals.
