Muni market set for sales
Municipal bond traders are set to see the first of this week’s new deals hit the screens on Tuesday, led by deals from New York City and Tennessee issuers.
U.S. Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.33% from 1.30% on Monday, the 10-year Treasury yield gained to 2.16% from 2.11% and the yield on the 30-year Treasury bond increased to 2.77% from 2.73%.
Top-quality municipal bonds ended weaker on Monday. The yield on the 10-year benchmark muni general obligation rose two basis points to 1.83% from 1.81% on Friday, while the 30-year GO yield gained three basis points to 2.68% from 2.65%, according to the final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni-to-Treasury ratio was calculated at 86.0%, compared with 87.9% on Friday, while the 30-year muni-to-Treasury ratio stood at 97.7% versus 98.9%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 29,913 trades on Monday on volume of $6.25 billion.
On Tuesday, Siebert Cisneros Shank & Co. will price New York City’s $855.56 million of Fiscal 2018 Series B and Series 1 bonds on the first of a two-day retail order period ahead of the institutional pricing on Thursday.
The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.
Also on Tuesday, Citigroup will price the Tennessee State School Bond Authority’s $402 million of Series 2017A and B tax-exempt and Series 2017C taxable higher educational facilities second program bonds.
The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.
RBC Capital Markets is expected to price the Minnesota Housing Finance Agency’s $125 million of Series 2017G non-AMT and Series 2017H taxable homeownership finance bonds issued under the mortgage-backed securities pass-through program on Tuesday.
The deal is rated Aaa by Moody’s.
Citi is set to price the state of Ohio’s $115 million of Series 2017A turnpike revenue refunding bonds.
The deal is rated Aa3 by Moody’s, AA-minus by S&P and AA by Fitch.
In the competitive arena on Tuesday, the state of Louisiana will sell $302.71 million of Series 2017B general obligation bonds.
The deal is rated Aa3 by Moody’s and AA-minus by S&P and Fitch.
Since 2008, the Bayou state has sold $9.76 billion of securities, with the most issuance occurring in 2012 when it sold $1.8 billion. The state saw the least amount of issuance in 2008 when it sold $200 million. With Tuesday’s sale, it will have issued more bonds this year than it did last year.
Prince George's County, Md., is selling $104 million of Series 2017 certificates of participation for the Regional Medical Center.
The COPs are rated Aa1 by Moody’s and AA-plus by S&P.
And the state of Michigan is selling $119.58 million of GOs in two separate sales. The offerings consist of $79 million of Series 2017A tax-exempt GO environmental program and refunding bonds and $40.58 million of Series 2017B taxable GO environmental program bonds.
The deals are rated Aa1 by Moody’s, AA-minus by S&P and AA by Fitch.
On Wednesday, the Maryland Department of Transportation is competitively selling $500 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.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $21.5 million to $10.33 billion on Tuesday. The total is comprised of $5.54 billion of competitive sales and $4.79 billion of negotiated deals.