Action is set to get underway in the municipal bond primary market as the week's $9.1 billion new issues start to hit the screens on Tuesday.
U.S. Treasuries were weaker on Tuesday. The yield on the two-year rose to 1.12% from 1.11% on Monday, the 10-year Treasury gained to 2.34% from 2.32%, while the yield on the 30-year Treasury bond increased to 2.99% from 2.98%.
Top-quality municipal bonds finished weaker on Monday. The yield on the 10-year benchmark muni general obligation on Monday rose three basis points to 2.40% from 2.37% on Friday, while the yield on the 30-year increased three basis points to 3.13% from 3.10%, 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 103.5% compared to 100.7% on Friday while the 30-year muni to Treasury ratio stood at 104.9% versus 102.6%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 47,191 trades on Monday on volume of $9.62 billion.
The week's calendar is comprised of $6.72 billion of negotiated deals and $2.38 billion of competitive sales.
Raymond James is scheduled to price the New York City Municipal Water Authority's $400 million of water and sewer system second general resolution revenue bonds on Tuesday.
The deal is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
Wells Fargo is expected to price the Board of Regents of the University of Texas' $300 million of system revenue financing system bonds on Tuesday.
The deal is rated triple-A by Moody's, S&P and Fitch.
In the competitive arena on Tuesday, the city and county of San Francisco's Public Utility Commission will be selling $256.49 million of Series 2016C taxable water revenue green bonds.
The deal is rated Aa3 by Moody's and AA-minus by S&P.
Also on Tuesday, Orange County, Fla., is competitively selling two separate issues totaling $296.57 million.
The offerings consist of $206.74 million of Series 2016B tourist development tax refunding revenue bonds and $89.83 million of Series 2016A tourist development tax refunding revenue bonds.
Both sales are rated Aa3 by Moody's, AA-minus by S&P and AA by Fitch.
Since 2006, the county has sold roughly $1.5 billion of securities, with the highest issuance before this year occurring in 2007 when it sold $307 million. The county did not come to market at all in 2008, 2011 or 2014. Tuesday's sales will put the county at over $400 million of issuance this year.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.17 billion to $17.95 billion on Tuesday. The total is comprised of $4.72 billion of competitive sales and $13.23 billion of negotiated deals.