Municipal bond market traders on Tuesday are set to see the start of this week’s supply hit the screens as several large competitive offerings are slated to sell.
Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.35% from 1.31% on Monday, the 10-year Treasury yield gained to 2.28% from 2.22% and the yield on the 30-year Treasury bond increased to 2.87% from 2.80%.
Top-quality municipal bonds ended mixed on Monday. The yield on the 10-year benchmark muni general obligation was unchanged from 1.88% on Thursday, while the 30-year GO yield increased one basis point to 2.74% from 2.73%, according to a read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni-to-Treasury ratio was calculated at 84.8%, compared with 86.0% on Friday, while the 30-year muni-to-Treasury ratio stood at 97.8% versus 98.0%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 32,191 trades on Monday on volume of $5.38 billion.
Action kicks off Tuesday in the competitive arena when Mecklenburg County, N.C., sells $225 million of Series 2017A general obligation public improvement bonds.
The deal is rated triple-A by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.
Since 2007 the county has sold $3.05 billion of securities, with the most issuance occurring in 2009 when it sold $909 million. It did not come to market in 2012 or 2014 and Tuesday’s sale marks the first one of this year.
The University of Alabama Board of Trustees will competitively sell $199.36 million of general revenue bonds in three separate offerings.
The deals consist of $159.04 million of Series 2017B tax-exempts, $15.38 million of Series 2017A tax-exempts and $24.94 million of Series 2017C taxables.
The deals are rated Aa2 by Moody’s and AA by S&P.
Hennepin County, Minn., will competitively sell $100 million of Series 2017C general obligation bonds.
In the negotiated sector, Bank of America Merrill Lynch will price for retail investors the city and county of Honolulu, Hawaii’s $411 million of general obligation bonds.
The issue is made up of tax-exempts, tax-exempt refundings, taxable refundings and taxable green bonds.
The deal is rated Aa1 by Moody’s and AA-plus by Fitch.
Also on Tuesday, Citigroup is set to price the Kentucky State Property and Building Commission’s $233.5 million of Project No. 117 revenue and refunding bonds.
The issue is composed of taxable and tax-exempt.
The deal is rated A1 by Moody’s and A-plus by Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $256.2 million to $9.77 billion on Tuesday. The total is comprised of $4.79 billion of competitive sales and $4.98 billion of negotiated deals.