Municipal bond traders were awaiting the kick-off of this week’s primary slate, topped by $1 billion of bonds coming from New York City’s Transitional Finance Authority.
This week’s calendar totals $7.9 billion, according to Ipreo, and consists of $5 billion of negotiated deals and $2.9 billion of competitive sales.
The NTYC TFA will be coming with the biggest offerings -- $1 billion, including one negotiated deal and two competitive sales.
On Monday, JPMorgan Securities is scheduled to open a two-day retail order period for the NYC TFA’s $750 million of future tax secured subordinate bonds. The deal is set to be priced for institutions on Wednesday.
This deal is expected to consist of $350 million of Fiscal 2016 Subseries B-1, $350 million of Fiscal 2016 Series C and $50 million of Fiscal 2016 Series D bonds.
These bonds are rated Aa1 by Moody’s Investors Service and triple-A by both Standard & Poor’s and Fitch Ratings.
On Wednesday, the TFA will offer $250 million of bonds in two competitive sales consisting of $198.32 million of Series B, Subseries B-2 taxable bonds and $51.69 million of Series B, Subseries B-3 taxable bonds. The bonds are rated triple-A by Fitch.
On Tuesday, the state of California will be selling $960.96 million of various purpose general obligation and refunding bonds in three separate competitive sales.
Bid group A will consist of $105.96 million of taxable bonds, bid group B will consist of $322.5 million of tax-exempt GO refunding bonds and bid group C will consist of $532.5 million tax-exempt GO refunding bonds. All three sales are rated Aa3 by Moody’s, AA-minus by S&P and A-plus by Fitch.
On Thursday, Citigroup is set to price the New Jersey Turnpike Authority’s $750 million of revenue bonds. The deal is rated A3 by Moody’s, A-plus by S&P and A by Fitch.
Secondary Trading
Treasury prices were mostly lower on Monday, with the yield on the two-year Treasury flat from 0.60% on Friday, while the 10-year yield rose to 2.03% from 2.02% and the 30-year yield increased to 2.89% from 2.86%.
The yield on the 10-year benchmark muni general obligation ended steady on Friday from 2.02% on Thursday, while the yield on the 30-year GO was flat from 3.07%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Friday at 98.6% versus 99.9% on Thursday, while the 30-year muni to Treasury ratio stood at 106.6% compared to 106.9%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 31,370 trades on Friday on volume of $7.79 billion.
Previous Week's Most Actively Traded Issues
Revenue bonds comprised 57.89% of new issuance in the week ended Oct. 16, up from 57.34% in the previous week, according to Markit. General obligation bonds comprised 34.00% of total issuance, down from 34.48%, while taxable bonds made up 8.11%, down from 8.18%.
Some of the most actively traded issues in the week were in New York, New Jersey and Puerto Rico.
In the revenue bond sector, the Port Authority of New York & New Jersey 4s of 2045 were traded 81 times. In the GO bond sector, the Puerto Rico commonwealth GO 8s of 2035 were traded 29 times. And in the taxable bond sector, the Port Authority of New York & New Jersey 4.81s of 2065 were traded 25 times, Markit said.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $338 million to $11.03 billion on Monday. The total is comprised of $3.81 billion competitive sales and $7.22 billion of negotiated deals.
