The municipal bond market will face a second busy day as more supply is set to hit the screens on Tuesday.

Retail buyers will get another crack at New York City’s big general obligation bond offering while several large competitive deals will join the queue.

Secondary market
The MBIS municipal non-callable 5% GO benchmark scale was mixed in early trading.

The 10-year muni benchmark yield rose to 2.349% on Tuesday from the final read of 2.334% on Monday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield decreased to 2.804% from 2.813%.

The MBIS benchmark index is updated hourly on the Bond Buyer Data Workstation.

Top-rated municipals finished stronger on Monday. The yield on the 10-year benchmark muni general obligation fell two basis points to 2.05% from 2.07% on Friday, while the 30-year GO yield dropped two basis points to 2.66% from 2.68%, according to the final read of MMD’s triple-A scale.

U.S. Treasuries were weaker. The yield on the two-year Treasury rose to 1.83% from 1.81%, the 10-year Treasury yield gained to 2.39% from 2.38% and the yield on the 30-year Treasury increased to 2.78% from 2.77%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 86.3% compared with 87.6% on Friday, while the 30-year muni-to-Treasury ratio stood at 96.1% versus 97.1%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,532 trades on Monday on volume of $8.40 billion.

Bond Buyer 30-day visible supply at $22.8B
The Bond Buyer's 30-day visible supply calendar decreased $1.09 billion to $21.69 billion on Tuesday. The total is comprised of $5.53 billion of competitive sales and $16.16 billion of negotiated deals.

Primary market
Ramirez & Co. is set to hold a second day of retail orders for New York City’s $850 million of Fiscal 2018 Series C and D GOs after hold the first day of the retail order period on Monday. The GOs will be priced for institutions on Wednesday

The $799.36 million of GOS were priced for retail on Monday to yield from 1.60% with 4% and 5% coupons in a split 2019 maturity to 2.98% with a 4% coupon in 2034.

The $50.65 million of Series D GOs were priced for retail on Monday to yield from 1.27% with a 2% coupon in 2018 to 3.20% with a 3.125% coupon in 2035.

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

Barclays Capital is set to price the Metropolitan St. Louis Sewer District, Mo.’s $317.77 million of Series 2017A wastewater system improvement and refunding revenue bonds for investors after holding a one-day retail order period.

The issue was priced for retail to yield from 1.49% with a 3% coupon in 2019 to 2.72% with a 5% coupon in 2037; a split half of a 2042 maturity was priced as 5s to yield 2.78%.

No retail orders were taken in the 2020-2031, 2033-2026, a split half of a 2042 or 2047 maturities.

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

In the competitive arena, Westchester County, N.Y., is selling $205.98 million of GOs in three separate offerings.

The deals consist of $160.82 million of Series 2017A tax-exempt GOs, $22.07 million of Series 2017C tax-exempt GOs and $23.09 million of Series 2017B taxable GOs.

All three deals are rated Aa1 by Moody’s and AAA by S&P and Fitch.

Since 2007, Westchester County has issued roughly $1.35 billion of bonds, with the most issuance occurring in 2010 when it sold $258 million of bonds. The county did not come to market in 2008.

The Board of Education of the Alpine School District, Utah, is selling $113.25 million of Series 2017B GO school building bonds under the Utah School Bond Guaranty program.

The deal is rated triple-A by Moody’s and Fitch.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.