Municipal bond traders on Tuesday are set to see the first of the week’s big deals come to market, led by the Bay Area Toll Authority’s $1 billion deal.

Secondary market
Treasuries were little changed on Tuesday. The yield on the two-year Treasury was flat from 1.35% on Monday, the 10-year Treasury yield was unchanged from 2.29% and the yield on the 30-year Treasury bond increased to 2.90% from 2.89%.

Municipals ended unchanged on Monday. The yield on the 10-year benchmark muni general obligation was steady from 1.95% on Thursday, while the 30-year GO yield was flat from 2.74%, 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 85.2%, compared with 85.3% on Friday, while the 30-year muni to Treasury ratio stood at 94.6% versus 94.7%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 32,051 trades on Monday on volume of $5.75 billion.

Primary market
Action kicks off on Tuesday with pricing of the Bay Area Toll Authority of Calif.’s $1.1 billion revenue bond offering for the San Francisco Bay Area Toll Bridge.

Bank of America will price the issue, which consists of $550 million of senior bonds made up of Series 2017- E, G, and H term-rates and $550 million of Series 2017-I index-rates and Series 2017 S-7 fixed-rated subordinate bonds.

The deal is rated Aa3 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.

Since 2007, BATA has issued $13.70 billion of securities, with the most issuance occurring in 2010 when it sold $2.38 billion. The authority did not come to market in 2011 or 2015 through 2016 – Tuesday’s sales put it at nearly $2 billion of issuance for the year, the fourth time the authority has issued that much in a year going back a decade.

Also on Tuesday, Wells Fargo Securities is set to price the Washington Metropolitan Area Transit Authority’s $496.5 million of Series 2017B gross revenue transit bonds. The deal is rated AA-minus by S&P and Fitch.

Goldman Sachs is expected to price Austin, Texas’ $313.54 million of water and wastewater system revenue refunding bonds on Tuesday.

The deal is rated Aa2 by Moody’s, AA by S&P and AA-minus by Fitch.

Piper Jaffray is set to price San Antonio, Texas’ $181.13 million of Series 2017 general improvement bonds, combination tax and revenue certificates of obligation and tax notes.

The deal is rated triple-A by Moody’s, S&P and Fitch.

In the competitive arena on Tuesday, the Regional Transportation Authority of Illinois will sell $188.38 million of Series 2017A general obligation refunding bonds.

The deal is rated AA by S&P and Fitch.

Oakland, Calif., is competitively selling $116.09 million of bonds in two separate offerings on Tuesday consisting of $59.93 million of Series 2017A-1 Measure KK tax-exempt GOs and $56.16 million of Series 2017A-2 Measure KK taxable GOs.

The deals are rated Aa2 by Moody’s and AA by S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $990.6 million to $12.87 billion on Tuesday. The total is comprised of $6.04 billion of competitive sales and $6.83 billion of negotiated deals.

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