Muni market set for more sales

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The municipal bond market will see more deals hit the screens on Wednesday, led by a big Maryland competitive sale and a second day of retail orders for the New York City offering.

Secondary market
U.S. Treasuries were mixed on Wednesday. The yield on the two-year Treasury rose to 1.35% from 1.33% on Tuesday, the 10-year Treasury yield was flat from 2.17% and the yield on the 30-year Treasury bond decreased to 2.77% from 2.78%.

Top-rated municipal bonds ended weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose three basis points to 1.86% from 1.83% on Monday, while the 30-year GO yield gained five basis points to 2.73% from 2.68%, according to the final read of Municipal Market Data's triple-A scale.

On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 85.8%, compared with 86.0% on Monday, while the 30-year muni-to-Treasury ratio stood at 98.4% versus 97.7%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 35,369 trades on Tuesday on volume of $8.62 billion.

Primary market
Siebert Cisneros Shank & Co. is holding a second day of retail orders for New York City’s $855.56 million of Fiscal 2018 Series B and Series 1 general obligation bonds ahead of the institutional pricing on Thursday.

The $550 million of the B-1 bonds were priced on Tuesday for retail to yield from 0.90% with a 3% in 2019 to 1.02% with a 4% coupon in 2020 and from 3.05% with a 3% coupon in 2034 to 2.98% with a 4% coupon in 2036. The bonds were also priced to yield 3.15% with a 4% coupon in 2040 and 3.32% with a 3.25% coupon in 2042. No retail orders were being taken in the 2030 through 2033, 2037 through 2039 and the 2041 maturities.

The $305.56 million of Series 1 bonds were priced for retail on Tuesday to yield from 1.01% with a 2% coupon in 2020 to 2.57% with a 5% coupon in 2033.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.

RBC Capital Markets is expected to price the Regents of the University of Minnesota’s Series 2017A general obligation bonds, Series 2017B GO refunding bonds and Series 2017C GO taxable refunding bonds on Wednesday.

The deal is rated Aa1 by Moody’s and AA by S&P.

Barclays Capital is set to price Colorado Springs, Colo.’s $237.63 million of Series 2017A-1, 2017A-2 and 2017A-3 utilities system refunding revenue bonds on Wednesday.

The deal is rated Aa2 by Moody’s and AA by S&P and Fitch.

Bank of America Merrill Lynch is set to price the Reedy Creek Improvement District, Fla.’s $195 million of Series 2017A ad valorem tax bonds.

The deal is rated Aa3 by Moody’s and AA-minus by S&P and Fitch.

Raymond James & Associates is set to price Memphis, Tenn.’s $155 million of Series 2017 electric, gas and water systems revenue bonds.

The deal is rated Aa1 by Moody’s and AA by S&P.

In the competitive arena on Wednesday, the Maryland Department of Transportation is competitively selling $425 million of Series 2017 second issue consolidated transportation bonds.

The deal is rated Aa1 by Moody’s, AAA by S&P and AA-plus by Fitch.

Since 2007, Maryland DOT has sold about $4.46 billion of securities, with the most issuance occurring in 2015 when it sold $961 million. It saw the lowest year of issuance in 2014 when it sold $100 million. With Wednesday’s sale, it has now issued more bonds this year than it did last year.
Seattle, Wash., will competitively sell $385.37 million of Series 2017C municipal light and power improvement and refunding revenue bonds.

The deal is rated Aa2 by Moody’s and AA by S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $69.2 million to $10.26 billion on Wednesday. The total is comprised of $5.18 billion of competitive sales and $5.09 billion of negotiated deals.

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Primary bond market Secondary bond market City of New York, NY City of Colorado Springs, CO City of Memphis, TN Maryland Department of Transportation City of Seattle, WA Regents of the University of Minnesota