Municipal bond traders are set for the institutional pricing of the New York City Transitional Finance Authority deal along with two competitive sales from the authority.
JPMorgan Securities is scheduled to price the TFA’s $749.28 million of future tax secured subordinate bonds after holding a two-day retail order period.
For retail, the $350 million of Fiscal 2016 Subseries B-1 bonds were priced as 5s to yield 3.19% in 2035 and as 3 5/8s to yield 3.67% in 2039; no retail orders were taken in the 2028-2034 or 2036-2038 maturities.
The $346.94 million of Fiscal 2016 Series C bonds were priced for retail to yield from 0.83% with a 5% coupon in 2018 to 3.13% with a 3% coupon in 2030; a 2017 maturity was offered as a sealed bid.
The $52.34 million of Fiscal 2016 Series D bonds were priced for retail to yield from 0.83% with a 3% coupon in 2018 to 3.13% with a 3% coupon in 2030; the 2016 and 2017 maturities were offered as sealed bids.
These bonds were rated Aa1 by Moody’s Investors Service and triple-A by both Standard & Poor’s and Fitch Ratings.
The TFA will also offer $250 million of bonds in two competitive sales consisting of $198.32 million of Series B, Subseries B-2 taxable bonds and $51.69 million of Series B, Subseries B-3 taxable bonds. These bonds were rated triple-A by Fitch.
Also on Wednesday, Bank of America Merrill Lynch is expected to price Harris County, Texas’ $340 million of Series 2015B improvement refunding, Series 2015A unlimited tax road refunding, Series 2015A control district improvement refunding, and Series 2015B control district contract tax refunding bonds. The issue was rated triple-A by Moody’s and S&P.
On Thursday, Citigroup is set to price the New Jersey Turnpike Authority’s $750 million of revenue bonds.
The deal was rated A3 by Moody’s, A-plus by S&P and A by Fitch.
Since 1995, the NJTA has issued over $10 billion of debt. The authority sold the most bonds in 2009 and 2013, when they issued $2.5 billion and $2.1 billion, respectively. The NJTA did not come to market from 2006 through 2009 or in 2011.
Secondary Market
Treasury prices were mostly higher on Wednesday, with the yield on the two-year Treasury remaining flat from 0.63% on Tuesday, while the 10-year yield fell to 2.06% from 2.07% and the 30-year yield decreased to 2.88% from 2.92%.
Municipal bond prices ended lower on Tuesday. The yield on the 10-year benchmark muni general obligation was one basis point stronger at 2.03% from 2.02% on Monday, while the yield on the 30-year GO was one basis point stronger at 3.08% from 3.07%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Tuesday at 96.6% versus 99.7% on Monday, while the 30-year muni to Treasury ratio stood at 104.7% compared to 106.6%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,546 trades on Tuesday on volume of $7.30 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $2.97 billion to $9.70 billion on Wednesday. The total is comprised of $2.24 billion competitive sales and $7.46 billion of negotiated deals.
