Municipal bond traders are set to see the first of the week’s new issue hit the screens on Tuesday, led by the Dormitory Authority of the State of New York’s four competitive bond sales.
Secondary market
Treasuries were stronger on Tuesday. The yield on the two-year Treasury slid to 1.35% from 1.36% on Monday, the 10-year Treasury yield fell to 2.28% from 2.32% and the yield on the 30-year Treasury bond decreased to 2.87% from 2.91%.
Municipal bonds finished mixed on Monday. The yield on the 10-year benchmark muni general obligation fell one basis point to 1.99% from 2.00% on Friday, while the 30-year GO yield was unchanged at 2.79%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 86.4% on Monday, compared with 86.2% on Friday, while the 30-year muni to Treasury ratio stood at 96.5% versus 95.9%, according to MMD.
Primary market
This week’s slate totals week’s $7.66 billion, and is composed of $3.99 billion of negotiated deals and $3.67 billion of competitive sales.
On Tuesday, DASNY plans four separate competitive sales of state sales tax revenue bonds totaling $1.35 billion.
The offerings consist of $473.08 million of Series 2017A Group C bonds, $448.74 million of Series 2017A Group B bonds, $354.68 million of Series 2017A Group A bonds and a taxable sale of $72.77 million of Series 2017B bonds.
The deals rate rated triple-A by S&P Global Ratings.
The state of New Mexico is competitively selling $383.36 million of bonds in two separate sales consisting of $307.56 million Series 2017A capital projects general obligation bonds and Series 2017B GO refunding bonds and $75.8 million of Series 2017A severance tax bonds.
The GOs are rated Aa1 by Moody’s Investors Service and AA by S&P and the severance tax bonds are rated Aa2 by Moody’s and AA-minus by S&P.
In the negotiated sector, Loop Capital Markets is expected to price the New Jersey Turnpike Authority’s $597.72 million of Series 2017B turnpike revenue bonds and Series 2017C taxable turnpike revenue bonds on Tuesday.
The deal is rated A2 by Moody’s, A-plus by S&P and A by Fitch Ratings.
Morgan Stanley is set to price the San Diego Regional Airport Authority’s $310.43 million of subordinate airport revenue bonds consisting of Series 2017A bonds not subject to the alternative minimum tax bonds and Series 2017B non-AMT bonds.
Since 2010, the airport authority has issued about $1.5 billion of bonds, with the most issuance occurring in 2010 when it sold almost $573 million of debt. The authority did not come to market in 2011, 2012, 2015 or 2016.
Barclays Capital is expected to price the Connecticut Health and Educational Facilities Authority’s $250 million of Series 2014A revenue bonds as a remarketing for Yale University.
The deal is rated triple-A by Moody’s and S&P.
JPMorgan Securities is expected to price the Virginia Small Business Financing Authority’s $244.74 million of Series 2017 senior lien revenue bonds for the 95 Express Lanes LLC project.
The deal is rated BBB by S&P and Fitch.
And Morgan Stanley is set to price the Chicago Transit Authority’s $230.09 million of Series 2017 capital grant receipts revenue bonds.
The deal is rated A by S&P and BBB by Fitch.
NYC plans $860M bond sale
New York City plans to sell about $860 million of general obligation bonds next week, the city announced on Monday.
The deal will consist of $800 million of tax-exempt fixed rate refunding bonds and $60 million of taxable fixed-rate reoffered bonds.
The tax-exempt part of the deal is slated to have a two-day retail order period starting on Monday, July 24, and be priced for institutions on Wednesday, July 26, by a group including book-running senior manager Bank of America Merrill Lynch, with Citigroup, Goldman Sachs, Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co., RBC Capital Markets and Siebert Cisneros Shank & Co., serving as co-senior managers.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $91.5 million to $9.19 billion on Tuesday. The total is comprised of $4.16 billion of competitive sales and $5.03 billion of negotiated deals.
