The municipal bond market is looking at a short week, with trading closed Friday for the Good Friday holiday.
Most of the primary deals are jammed into Tuesday and Wednesday, with almost all coming in the negotiated sector. There is only one competitive sale over $100 million and that sells Monday.
Total volume for the week is estimated at $6.21 billion, consisting of $5.48 billion of negotiated deals and $723.5 million of competitive sales.
Secondary Trading
U.S. Treasuries were lower on Monday. The yield on the two-year Treasury rose to 0.86% from 0.84% on Friday, while the 10-year Treasury yield gained to 1.90% from 1.87% and the 30-year Treasury bond yield increased to 2.72% from 2.67%.
Top rated municipal bonds finished stronger on Friday. The yield on the 10-year benchmark muni general obligation fell two basis points to 1.83% from 1.85% on Thursday, while the 30-year muni yield dipped one basis point to 2.79% from 2.80%, 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 97.7% compared to 97.3% on Thursday, while the 30-year muni to Treasury ratio stood at 104.3% versus 103.9%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,950 trades on Friday on volume of $11.30 billion.
Primary Market
The Florida Department of Transportation will competitively sell $106.21 million of Series 2016B turnpike revenue refunding bonds on Monday. The bonds are rated Aa2 by Moody’s Investors Service and AA by Fitch Ratings.
Morgan Stanley is expected to price the Kentucky Turnpike Authority’s $219.18 million of economic development road revenue bonds for revitalization projects for retail investors on Monday ahead of the institutional pricing on Tuesday.
Citigroup is set to price DeKalb County, Ga.’s $145 million of general obligation bonds for retail investors on Monday ahead of the institutional pricing on Tuesday. The deal is rated Aa3 by Moody’s.
The biggest deal of the week is coming on Tuesday from Houston, Texas, when Loop Capital Markets will price the city’s $581.99 million of Series 2016A public improvement refunding bonds. The deal is rated Aa3 by Moody’s and AA-plus by Standard & Poor’s.
Also on Tuesday, Citi is expected to price the city and county of Denver, Colo.’s $353 million of tax revenue refunding bonds consisting of tax-exempt and taxables. The deal is rated Aa3 by Moody’s and AA-minus by S&P.
RBC Capital Markets is set to price the Board of Regents of the Texas A&M University System’s $325.75 million of Series 2016B taxable revenue financing bonds. The bonds are rated triple-A by Moody’s and expected to be rated AA-plus by S&P.
The Metropolitan Transportation Authority, N.Y., plans to sell $700 million bond anticipation notes Tuesday in two issues.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $280.4 million to $9.21 billion on Monday. The total is comprised of $2.31 billion of competitive sales and $6.90 billion of negotiated deals.
The Prior Week's Most Actively Traded Issues
Revenue bonds comprised 51.82% of new issuance in the week ended March 18, down from 52.64% in the previous week, according to Markit. General obligation bonds comprised 40.067% of total issuance, up from 39.57%, while taxable bonds made up 8.12%, up from 7.79%, according to
Some of the most actively traded issues by type were in California and New York, In the GO bond sector, the California 3s of 2033 traded 49 times. In the revenue bond sector, the New York City Transitional Finance Authority 4s of 2045 traded 132 times. And in the taxable bond sector, the California 7.55s of 2039 traded 23 times, Markit said.
