Municipal bond traders are awaiting the start of this week's new issue sales.
Secondary market
U.S. Treasuries were mixed on Tuesday. The yield on the two-year Treasury was unchanged from 1.36% on Monday as the 10-year Treasury yield rose to 2.22% from 2.21% while the yield on the 30-year Treasury bond increased to 2.88% from 2.87%.
Top-rated municipal bonds ended weaker on Monday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.88% from 1.87% on Friday, while the 30-year GO yield increased one basis point to 2.72% from 2.71%, according to the final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni to Treasury ratio was calculated at 85.0%, compared with 85.1% on Friday, while the 30-year muni to Treasury ratio stood at 94.8% versus 95.0%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 35,107 trades on Monday on volume of $6.22 billion.
Primary market
Action gets underway on Tuesday with the pricing of several large deals.
Bank of America Merrill Lynch is set to price the state of Wisconsin’s $347.54 million of general obligation refunding bonds.
The deal is rated Aa2 by Moody’s Investors Service, and AA by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.
Since 2007, Wisconsin had sold about $20.99 billion of securities with the most issuance occurring in 2009 when it sold $2.39 billion.
The Badger State has sold more than $1 billion every year for the past decade, with the lowest yearly total coming in 2007 when it sold $1.14 billion. Tuesday’s sale put the state over the $2 billion mark for second year in a row.
JPMorgan Securities is set to price the New York City Housing Development Corp.’s $272.73 million of Series 2017 C-1 and C-2 multi-family housing revenue sustainable neighborhood bonds.
The deal is rated Aa2 by Moody’s and AA-plus by S&P.
JPM is also set to price Tallahassee, Fla.’s $154.28 million of Series 2017 energy system refunding revenue bonds.
The deal is rated Aa2 by Moody’s and AA by S&P.
Citigroup is expected to price the California Municipal Finance Authority’s $151 million of Series 2017A lease revenue bonds for the Orange County Civic Center infrastructure improvement program’s phase 1.
The deal is rated AA by S&P and Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $1.32 billion to $12.66 billion on Tuesday. The total is comprised of $3.83 billion of competitive sales and $8.84 billion of negotiated deals.
