Municipal bond market participants are returning to their desks on Monday, set to see about $5.6 billion of new issues hit the screens this week. The calendar is comprised of $4.1 billion of negotiated deals and $1.5 billion of competitive sales.
Secondary Market
U.S. Treasuries were weaker on Monday. The yield on the two-year Treasury rose to 1.21% from 1.19% on Friday, while the 10-year Treasury gained to 2.44% from 2.41%, and the yield on the 30-year Treasury bond increased to 3.03% from 3.01%.
Top-shelf municipal bonds finished weaker on Friday. The 10-year benchmark muni general obligation yield rose two basis points to 2.30% from 2.28% on Thursday, while the yield on the 30-year GO increased one basis point to 3.07% from 3.06%, according to the final read of Municipal Market Data's triple-A scale.
On Friday, the 10-year muni to Treasury ratio was calculated at 95.5% compared to 95.2% on Thursday, while the 30-year muni to Treasury ratio stood at 101.9%, versus 101.6%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,818 trades on Friday on volume of $8.78 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 59.01% of new issuance in the week ended Feb. 10, up from 58.07% in the previous week, according to
Some of the most actively traded issues by type in the week were from New York and California.
In the GO bond sector, the New York City 5s of 2028 were traded 57 times. In the revenue bond sector, the New York Metropolitan Transportation Authority 2s of 2017 were traded 106 times. And in the taxable bond sector, the California 7.55s of 2039 were traded 17 times.
Previous Week's Top Underwriters
The top negotiated and competitive underwriters of last week included Citigroup, Goldman Sachs, Bank of America Merrill Lynch, JPMorgan Securities and Stifel, according to Thomson Reuters data.
In the week of Feb. 5 to Feb. 11, Citi underwrote $2.98 billion, Goldman $1.30 billion, BAML $668.6 million, JPMorgan $525.2 million and Stifel $345 million.
Primary Market
Bank of America is set to price the San Francisco Bay Area Toll Authority, Calif.'s $552 million of Series 2017A, B, C & D toll bridge term- and index-rate revenue bonds on Tuesday.
The bonds are rated Aa3 by Moody's Investors Service and AA by S&P Global Ratings and Fitch Ratings.
BAML is also expected to price the Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey's $438 million of Series 2017 bridge system revenue bonds on Tuesday after a one-day retail order period on Monday.
The deal is rated A1 by Moody's, A by S&P and A-plus by Fitch.
And BAML is expected to price the New York Metropolitan Transportation Authority's $350 million of Series 2017A dedicated tax fund green bonds which are climate bond certified. The issue is slated to be priced on Wednesday after a one-day retail order period on Tuesday.
The deal is rated AA by S&P and Fitch.
Additionally, BAML is set to price the Connecticut Housing Finance Authority's $210 million of Series 2017 Subseries A-1, A-2 (AMT) A-4 and A-5 housing mortgage finance program bonds on Wednesday after holding a one day retail-order period on Tuesday.
The CHFA said that if there is strong demand the deal could be all wrapped up on Tuesday. The deal is rated triple-A by Moody's and S&P.
Goldman Sachs is expected to price the Dormitory of the State of New York's $190.65 million of Series 2017 revenue bonds for Columbia University.
The DASNY deal is rated triple-A by Moody's and S&P.
Piper Jaffray is set to price two deals for the Gresham-Barlow School District No. 10JT, Ore., totaling $291.17 million on Tuesday. The deals consist of $152.43 million of Series 2017B general obligation current interest bonds and $138.74 million of Series 2017A GO DIBs.
The deals are rated A-plus by S&P.
In the competitive arena, the Long Beach Unified School District, Calif., is selling $450 million of general obligation bonds in two separate sales on Tuesday.
The offerings consist of $300 million of election of 2016 Series A unlimited tax GOs and $150 million of election of 2016 Series E unlimited tax GOs.
The deals are rated Aa2 by Moody's and triple-A by Fitch.
The Las Vegas Valley Water District, Nev., is selling $152.77 million of GOs in two separate sales on Tuesday. The offerings consist of $129.33 million of Series 2017A limited tax GO water refunding bonds additionally secured by pledged revenue and $23.44 million of Series 2017B limited tax GO water refunding bonds additionally secured by Southern Nevada Water Authority pledged revenue.
The deals are rated Aa1 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $354 million to $9.71 billion on Monday. The total is comprised of $3.11 billion of competitive sales and $6.59 billion of negotiated deals.
