Traders were eyeing the week's hefty new supply, which began coming to market on Monday. Issuers in California, Texas and Washington state lead off Tuesday's calendar.
RBC Capital Markets is scheduled to price the California State of Public Works Board's $552 million of Series 2015 F and G lease revenue refunding bonds.
The bonds are rated A1 by Moody's Investors Service, A-plus by Standard & Poor's and A by Fitch Ratings.
JPMorgan Securities is slated to price for retail the Board of Regents of the University of North Texas System's $222 million of Series 2015A revenue financing system refunding and improvement bonds and Series 2015B taxable revenue financing system refunding bonds. The institutional pricing is slated for Wednesday.
The bonds are rated Aa2 by Moody's and AA by Fitch.
And Bank of America Merrill Lynch is expected to price Energy Northwest, Wash.'s $110 million of Project 1 electric revenue refunding bonds, electric revenue refunding bonds for the Columbia Generation Station and Project 3 electric revenue refunding bonds. The issue is rated Aa1 by Moody's, AA-minus by S&P and AA by Fitch.
On Wednesday, RBC will be pricing the state of Connecticut's $840 million of Series 2015A and Series 2015B special tax obligation bonds for transportation infrastructure for retail investors. The Series 2015B will be refunding bonds. This deal is scheduled to be priced for institutions on Thursday.
Barclays Capital is expected to price Miami-Dade County Educational Facilities Authority, Fla.'s $650 million of revenue and revenue refunding bonds for the University of Miami on Wednesday. Tentatively, the deal is split up for $400 million of tax-exempt and $250 million of taxable, Series 2015A and B.
Ramirez is slated to price the Massachusetts Bay Transit Authority's $279.77 million of Series 2015 A and B senior sales tax bonds on Wednesday.
Washington state will be offering about $983 million of bonds, which are made up of four competitive sales and one negotiated deal which came to market on Monday. Bank of America Merrill Lynch priced the state's $39 million of Series 2016A-2 various purpose general obligation green bonds.
On Wednesday, the Evergreen State will be selling four competitive issues consisting of $61 million of Series 2016T GO taxable bonds, $192 million of Series 2016B motor fuel tax GOs, $194 million of Series R-2016A various purpose GO refunding bonds, and $498 million of Series 2015A-1 various purpose GOs.
All of the issues are rated Aa1 by Moody's and AA-plus by S&P and Fitch.
Including this week's issues, the state has issued about $1 billion of debt since 1995, with the biggest issuance coming in 2010 and 2012 when it sold $3.40 billion and $3.50 billion, respectively. The lowest years of issuance were in 1996 and 1998 when the state offered &550 million and $546 million, repsctively.
Secondary Trading
Treasury prices were mostly lower on Tuesday, with the yield on the two-year Treasury note unchanged from 0.67% on Monday, while the 10-year yield rose to 2.10% from 2.09% and the 30-year yield increased to 2.87% from 2.86%.
The yield on the 10-year benchmark muni general obligation on Monday closed three basis points weaker at 2.06% from 2.09% on Friday, while the yield on the 30-year GO was three basis points weaker at 3.07% from 3.10%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Monday at 98.4% versus 96.5% on Friday, while the 30-year muni to Treasury ratio stood at 107.0% compared to 104.8%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 31,962 trades on Monday on volume of $5.353 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $4.94 billion to $12.89 billion on Tuesday. The total is comprised of $3.56 billion competitive sales and $9.34 billion of negotiated deals.
