Prices of top-rated municipal bonds were higher at mid-session, traders said, with yields on some maturities falling by as much as three basis points.
In the primary market, Baltimore County, Md., sold two high-quality issues totaling $167.48 million in the competitive sector.
Secondary Market
The yield on the 10-year benchmark muni general obligation fell by as much as two basis points from 2.31% on Monday, while the yield on the 30-year GO was from one to three basis points lower from 3.29%, according to a read of Municipal Market Data's triple-A scale.
Treasury prices were higher on Tuesday with the yield on the two-year Treasury note falling to 0.69% from 0.70% on Monday, while the 10-year yield decreased to 2.33% from 2.36% and the 30-year yield dropped to 3.08% from 3.09%.
The 10-year muni to Treasury ratio was calculated on Monday at 98.0% versus 97.9% on Friday, while the 30-year muni to Treasury ratio stood at 106.5% compared to 109.1%, according to MMD.
Primary Market
Barclays Capital won Baltimore County's $97.89 million of Series 2015 Metropolitan District refunding bonds with a true interest cost of 2.65%. No pricing information was immediately available.
Barclays also won the county's $69.59 million of Series 2015 consolidated public improvement refunding bonds with a TIC of 2.28%. No pricing information was immediately available.
Both issues were rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
The county last sold comparable bonds competitively on June 25, 2012, when Bank of America Merrill Lynch won $74.61 million of Series 2014C Metropolitan District refunding bonds.
Also in the competitive arena, Lake County, Ill., sold $90 million of Series 2015A general obligation bonds backed by a sales tax alternative revenue source. BMO Capital Markets won the bonds with a TIC of 3.76%. No pricing information was available. The GOs were rated triple-A by Moody's and S&P.
The county last sold comparable bonds competitively on Nov. 6, 2013, when Hutchinson Shockey won $30 million of Series 2013 GOs backed by a sales tax alternative revenue source.
On Monday, Goldman, Sachs priced the New York City Transitional Finance Authority's $750 million of Series S-2 Fiscal 2015 building aid revenue bonds for retail investors. The new money BARBs are having a second day of retail orders ahead of the institutional pricing on Wednesday.
The bonds were priced for retail on Day 2 to yield from 1.13% with 2% and 5% coupons in a split 2018 maturity to 3.45% with a 5% coupon in 2035; a 2044 term bond was priced as 4s to yield about 4.029%; a 2044 term bond was priced as 4s to yield about 4.029%. The 2016 and 2017 maturities were offered as sealed bids; no retail orders were taken in the 2028 through 2030 maturities, in the 2032 through 2034 maturities or in the 2040 or 2042 maturities.
The BARBs were rated Aa2 by Moody's and AA by S&P and Fitch.
JPMorgan is slated to price the New York City Housing Development Corp.'s $563.85 million of multi-family housing revenue bonds for the Sustainable Neighborhood Program.
The issue is initially structured as $496.45 million of Series 2015 D-1 fixed-rate bonds, $64.14 million of Series 2015 D-2 fixed-rate bonds and $3.26 million of Series 2014 Series I fixed-rate bonds. The issue is rated Aa2 by Moody's and AA-plus by S&P.
The NYC HDC is also coming to market on Tuesday with a $40 million sale of taxable multi-family housing revenue bonds to be priced by Citi. The Sustainable Neighborhood bonds are initially structured as serials maturing from 2016 to 2025 and terms in 2030, 2035 and 2044.
Sustainable Neighborhood bonds are a new category of social investment bonds and the first for affordable housing in the United States.
In total, the HDC's Board of Directors voted to authorize $842 million in Sustainable Neighborhood bonds, including Tuesday's deals.
"The financing that the board approved will create and preserve safe, quality affordable housing that provides deeper levels of affordability, serves some of the most vulnerable New Yorkers, and fosters greater economic diversity and stronger neighborhoods," HDC President Gary Rodney told The Bond Buyer.
Since 1995, the HDC has sold about $18 billion of bonds, with the most issuance coming in 2-13 and 2014 when it sold $1.77 billion and 1.93 billion, respectively. The least amount of issuance occurred in 1995 and 1997, when it issued $242 million and $304 million, respectively.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,593 trades on Monday on volume of $8.055 billion. The most active bond, based on the number of trades, was the Miami-Dade County, Fla.'s Series 2015A aviation revenue refunding AMT 4 1/2s of 2045, which traded 103 times at an average price of 100.80 with an average yield of 4.385%. The bonds were initially priced at 98.369 to yield 4.60%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.60 billion to $12.63 billion on Tuesday. The total is comprised of $3.48 billion competitive sales and $9.15 billion of negotiated deals.
