Municipal bond traders are set to see a heftier new issue slate on tap for the week ahead. The calendar is composed of mostly negotiated deals with no competitive sales over $100 million slated for the week.
Secondary Market
U.S. Treasuries were mixed on Monday. The yield on the two-year rose to 1.26% from 1.25% on Friday, while the 10-year Treasury yield fell to 2.39% from 2.40%, and the yield on the 30-year Treasury bond was unchanged at 3.02%.
Top-shelf municipal bonds finished weaker on Friday. The yield on the 10-year benchmark muni general obligation rose one basis point to 2.25% from 2.24% on Thursday, while the 30-year GO yield increased two basis points to 3.05% from 3.03%, 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 93.9% compared with 92.7% on Thursday, while the 30-year muni to Treasury ratio stood at 101.0%, versus 100.1%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,689 trades on Friday on volume of $9.97 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 58.21% of new issuance in the week ended March 31, down from 58.39% in the previous week, according to
Some of the most actively traded issues by type were from Connecticut, California and Massachusetts.
In the GO bond sector, the Connecticut 4s of 2037 were traded 87 times. In the revenue bond sector, the San Jose Airport 5s of 2041 were traded 44 times. And in the taxable bond sector, the Illinois 5.1s of 2033 were traded 20 times.
Previous Week's Top Underwriters
The top negotiated and competitive underwriters of last week included Citigroup, JPMorgan Securities, Goldman Sachs, Stifel and RBC Capital Markets, according to Thomson Reuters data.
In the week of March 26 to April 1, Citi underwrote $2.14 billion, JPMorgan $726.8 million, Goldman Sachs $480 million, Stifel $475.7 million and RBC $372.1 million.
Primary Market
This week's $7.32 billion calendar is composed of $6.75 billion of negotiated deals and $569.2 million of negotiated sales.
The state of Massachusetts plans to come to market with over $1 billion of bonds in two separate negotiated deals.
Citigroup is expected to price the state's $778 million general obligation bond offering on Thursday. The deal is comprised of $400 million of Series 2017A GO, $278 million of Series 2017C refunding bonds and $100 million of Series 2017B GO green bonds.
The deal is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
Bank of America Merrill Lynch is set to price Massachusetts' $305 million of state revolving fund Series 20 green bonds and Series 2017 refunding bonds on Wednesday after a one-day retail order period on Tuesday.
The deal is rated triple-A by Moody's, S&P and Fitch.
Also on Tuesday, Goldman Sachs is expected to price San Antonio, Texas' $306.98 million of electric and gas systems refunding and revenue bonds.
The deal is rated Aa1 by Moody's, AA by S&P and AA-plus by Fitch.
Citi is set to price the state of Oregon's $296 million of Series I, J, and L higher education GOs on Tuesday.
The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch.
RBC Capital Markets is expected to price the San Joaquin County Transportation Authority, Calif.'s $207.77 million of Series 2017 Measure K sales tax revenue refunding bonds on Tuesday.
The deal is rated AA by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $205.5 million to $12.34 billion on Monday. The total is comprised of $3.06 billion of competitive sales and $9.28 billion of negotiated deals.
