The municipal bond market will see the lion’s share of issuance hit the screens on Tuesday, led by California’s $2.5 billion general obligation bond deal and the Greater Orlando Aviation Authority’s revenue bond sale.

Secondary market
Treasuries were stronger on Tuesday. The yield on the two-year Treasury fell to 1.30% from 1.33% on Monday, the 10-year Treasury yield declined to 2.10% from 2.16% and the yield on the 30-year Treasury bond decreased to 2.70% from 2.75%.

Top-rated municipal bonds finished unchanged on Monday. The yield on the 10-year benchmark muni general obligation was unchanged from 1.88% on Friday, while the 30-year GO yield was steady from 2.73%, according to the final read of Municipal Market Data's triple-A scale.

The 10-year muni-to-Treasury ratio was calculated at 87.2% on Monday, compared with 86.7% on Friday, while the 30-year muni-to-Treasury ratio stood at 99.3% versus 99.2%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 30,847 trades on Monday on volume of $5.55 billion.

Primary market
Goldman Sachs is set to price California’s $2.51 billion of various purpose GO and refunding GOs for institutions after the retail pricing on Monday.

The $788.82 million of various purpose GOs were priced for retail to yield from 1.09% with a 4% coupon in 2021 to 2.23% with a 5% coupon in 2028 and to yield 2.50% with a 5% coupon in 2031. A split half of a 2032 maturity was priced as 4s to yield 2.86% and the split half of a 2047 maturity was priced as 4s to yield 3.31%. No retail orders were taken in the 2035 or the other halves of the 2032 or 2047 maturities.

The $1.72 billion of various purpose refunding GOs were priced for retail to yield from 0.77% with a 4% coupon in 2018 to 2.75% with a 4% coupon in the split half of a 2031 maturity; a split half of a 2036 maturity was priced as 4s to yield 3.09% and the split half of a 2037 maturity was priced as 4s to yield 3.12%.

No retail orders were taken in the 2032 to 2035 maturities or the other halves of the 2031, 2036 and 2037 maturities.

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

Since 2007, the state has sold $101.94 billion of securities, with the most issuance occurring in 2009 when it brought $23.18 billion of bonds to market. During that time span, the Golden State has never issued less than $4.9 billion in a year, which it did it 2011.

In the competitive arena on Tuesday, Prince George’s County, Md., is selling $480.85 million of GOs in two separate offerings.

The sales consist of $366.46 million of Series 2017A GO consolidated public improvement bonds and $114.39 million of Series 2017B GO consolidated public improvement refunding bonds.

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

Beaumont, Texas, is competitively selling $113.94 million of Series 2017 unlimited tax refunding bonds.

The deal is backed by the Permanent School Fund guarantee program.

In the negotiated sector on Tuesday, RBC Capital Markets is expected to price the Greater Orlando Aviation Authority, Fla.’s $950 million Series 2017A priority subordinated airport facilities revenue bonds subject to the alternative minimum tax.

The deal is rated A1 by Moody’s and A-plus by S&P and Fitch.

Bank of America Merrill Lynch is expected to price the Illinois Finance Authority’s $558 million of Series 2017 revolving fund revenue bonds under the state of Illinois' clean water initiative on Tuesday.

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

BAML will also price the Wisconsin Health and Educational Facilities Authority’s $308 million of Series 2017B and 2017C revenue bonds for the Marshfield Clinic Health System.

The deal is rated A-minus by S&P and Fitch.

BAML is also expected to price the Oregon Department of Housing and Community Services’ $107 million of single-family mortgage revenue bonds.

The deal, which consists of Series 2017D bonds not subject to the alternative minimum tax and Series 2017E AMT bonds, is rated Aa2 by Moody’s.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $672.4 million to $10.26 billion on Tuesday. The total is comprised of $3.27 billion of competitive sales and $6.99 billion of negotiated deals.

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