Municipal bond traders are set to see the start of the week's new issue supply come to market, topped by a big sale from the Massachusetts School Building Authority.
Secondary Market
Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 0.81% from 0.79% on Monday, the 10-year Treasury yield gained to 1.63% from 1.62% and the yield on the 30-year Treasury bond increased to 2.35% from 2.33%.
Top-rated municipal bonds ended mixed on Monday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.52% from 1.51% on Friday, while the yield on the 30-year was unchanged from 2.31%, 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 93.7% on Monday compared to 94.6% on Friday, while the 30-year muni to Treasury ratio stood at 98.9% versus 99.4%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 26,968 trades on Monday on volume of $12.88 billion.
Primary Market
And action will get underway when Barclays Capital prices the Massachusetts School Building Authority's $604.3 million of Series 2016B senior dedicated sales tax bonds and Series 2016C senior dedicated sales tax refunding bonds for retail investors ahead of the institutional offering on Wednesday.
The deal is rated Aa2 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
JPMorgan Securities is expected to price the Arizona Board of Regents Series 2016A system revenue and revenue refunding bonds and Series 2016B system revenue green bonds for the University of Arizona on Tuesday.
The deal is rated Aa2 by Moody's and AA-minus by S&P.
Bank of America Merrill Lynch is expected to price the Massachusetts Development Finance Agency's $195 million of Series 2016 BB-1, BB-2 and BB-3 revenue bonds for Boston University in Tuesday.
The deal is rated A1 by Moody's and A-plus by S&P.
BAML is also set to price the Georgia Housing and Finance Authority's $117 million of Series 2016B-1 non-AMT and Series 2016B-2 single-family mortgage bonds for retail on Tuesday ahead of the institutional pricing on Wednesday.
The deal is rated triple-A by S&P.
Ziegler is expected to price the Kalamazoo Hospital Finance Authority, Mich.'s $112.38 million of Series 2016 hospital revenue refunding bonds for the Bronson Healthcare Group on Tuesday.
The deal is rated A2 by Moody's
Citigroup is set to price the West Basin Municipal Water District, Calif.'s $112 million of Series 2016A refunding revenue bonds on Tuesday.
The deal is rated Aa2 by Moody's and AA-minus by S&P.
The biggest deal of the week is coming on Wednesday from the Massachusetts Development Finance Agency. Goldman Sachs is set to price the DFA's $1.54 billion of Series 2016A revenue bonds for Harvard University. The deal is rated triple-A by Moody's and S&P.
Since 2006, the DFA has sold almost $16.5 billion of bonds, with the most issuance prior to this year occurring in 2001 when it sold $1.99 billion of bonds. The agency sold the least amount of debt in 2009 when it issued $616.7 million.
In the competitive arena on Wednesday, Wisconsin is selling about $325 million of Series 2016D general obligation bonds. The last time the state competitively sold comparable bonds was on July 12 when Morgan Stanley won $83.98 million of Series 2016B GOs with a true interest cost of 0.99%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.64 billion to $21.54 billion on Tuesday. The total is comprised of $3.81 billion of competitive sales and $17.74 billion of negotiated deals.
