Several of the week's big issues are scheduled to come to market Tuesday as municipal bond traders await a second day of new supply. On Monday, the Florida Board of Education sold $247.4 million of refunding bonds to jump-start the slate.
Secondary Market
Treasury prices were mixed on Tuesday. The yield on the two-year Treasury note slipped to 0.57% from 0.58% on Monday, while the 10-year yield was flat at 1.91% and the 30-year yield decreased to 2.49% from 2.50%.
Top-quality munis were steady on Monday. The yield on the 10-year benchmark muni general obligation on Monday was unchanged from 1.94% on Friday, while the yield on 30-year GO was flat at 2.76%, 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 101.3% versus 100.6% on Friday, while the 30-year muni to Treasury ratio stood at 110.0% compared to 110.2%.
Primary Market
Today, the University of Kentucky will sell three competitive issues of general receipts refunding bonds totaling $282 million.
The sales consist of $149 million of Series A bonds, $111 million of Series B bonds and $22 million of Series C bonds. All three issues are rated Aa2 by Moody's Investors Service and AA by Standard & Poor's.
The university last sold bonds on June 26, 2014, when Morgan Stanley won $99.675 million of bonds with a TIC of 2.0213%.
Topping the negotiated calendar is the $1.69 billion tobacco bond deal from California's Golden State Tobacco Securitization Corp.
The asset-backed securities, scheduled to be priced by Citigroup Global Markets for retail investors Tuesday, is rated A1 by Moody's and A by S&P and Fitch Ratings.
Citigroup is also expected to price the Northeast Independent School District, Texas' $390 million of Series 2015 bonds today. The bonds are rated triple-A by Moody's and S&P.
On Monday, Citigroup Global Markets won the Florida BoE's $247.4 million of Series 2015C public education capital outlay refunding bonds with a true interest cost of 3.0786%. The bonds were priced to yield from 0.30% with a 5% coupon in 2016 to 3.13% with a 4% coupon in 2035. The issue is rated Aa1 by Moody's and triple-A by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $97.0 million to $12.836 billion on Tuesday. The total is comprised of $4.204 billion competitive sales and $8.632 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,817 trades on Monday on volume of $6.415 billion.
Most active on Monday, based on the number of trades, was the Cook Co., Ill., Series 2009C general obligation refunding 5s of 2020, which traded 295 times at an average price of 113.692 with an average yield of 1.9%; (initial offering yield of 4.01%).
