The municipal bond market is set to see the first of the week's new issues price on Tuesday, with a special emphasis on California issuers.
Secondary Market
Treasuries were stronger on Tuesday. The yield on the two-year Treasury declined to 0.73% from 0.74% on Monday, the 10-year Treasury yield dropped to 1.55% from 1.59% and the yield on the 30-year Treasury bond decreased to 2.28% from 2.33%.
Top-quality municipal bonds ended steady to stronger on Monday. The yield on the 10-year benchmark muni general obligation dropped one basis point to 1.51% from 1.52% on Friday, while the yield on the 30-year was steady from 2.30%, 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 95.1% compared to 94.1% on Friday, while the 30-year muni to Treasury ratio stood at 98.9% versus 98.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,765 trades on Monday on volume of $9.20 billion.
Primary Market
Wells Fargo Securities is slated to price the California State Public Works Board's $527.54 million of Series 2016C&D lease revenue refunding bonds for various capital projects on Tuesday.
The deal is rated A1 by Moody's Investors Service and A-plus by S&P Global Ratings and Fitch Ratings.
Citigroup is expected to price the Palomar Health, Calif.'s $210 million of Series 2016A&B general obligation refunding bonds. The deal is rated A2 by Moody's, A by S&P and triple-A by Fitch.
Wells Fargo is set to price the state of California's $200 million of GO index floating rates consisting of Series 2016B new issue bonds and a Series 2013C remarketing. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Ramirez & Co. is expected to price the Los Angeles Community College District, Calif.'s $171.69 million of Series 2016 GO refunding bonds. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Bank of America Merrill Lynch is set to price Corona-Norco Unified School District, Calif.'s $102 million Series 2016A&B GO refunding bonds. The deal is rated Aa2 by Moody's and AA-minus by S&P.
Keybanc Capital Markets is expected to price the state of Ohio's $100 million of Series 2016C capital facilities appropriation parks and recreation improvement bonds. The deal is rated Aa2 by Moody's and AA by S&P and Fitch.
In the competitive arena on Tuesday, Hennepin County, Minn., is offering two separate issues totaling $155.32 million. The deals consist of $95 million of Series 2016B GOs and $60.32 million of Series 2016C GO refunding bonds. The deals are rated triple-A by S&P and Fitch.
The county last competitively sold comparable bonds on June 23, when BAML won $104.29 million of Series 2016A GOs with a true interest cost of 2.93%.
Since 2006, the county has issued about $1.7 billion of bonds, with the most issuance occurring in 2008 when it sold about $349 million of securities. The county did not come to market in 2015.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $928.8 million to $13.47 billion on Tuesday. The total is comprised of $3.36 billion of competitive sales and $10.11 billion of negotiated deals.
