Municipal bond traders on Tuesday are set for the start of this week's new issue calendar, topped by two competitive sales totaling over $500 million coming from Nevada's Clark County School District.
Secondary Market
Treasury prices were lower on Tuesday, with the yield on the two-year Treasury rising to 0.76% from 0.75% on Monday, while the 10-year yield gained to 2.20% from 2.18% and the 30-year yield increased to 2.97% from 2.95%.
Prices of top-rated munis closed lower on Monday. The yield on the 10-year benchmark muni general obligation was two basis points stronger at 2.06% from 2.04% on Friday, while the yield on the 30-year GO was one basis point stronger at 3.08% from 3.07%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Monday at 94.4% versus 93.8% on Friday, while the 30-year muni to Treasury ratio stood at 104.3% compared to 103.5%, according to MMD.
Primary Market
The Clark County School District on Tuesday will sell $342 million of Series 2015C limited tax general obligation building and refunding bonds and $200 million of Series 2015B limited tax GO school bonds additionally secured by pledged revenues.
The bonds are rated A1 by Moody's Investors Service and AA-minus by Standard & Poor's.
The district last sold comparable bonds on Feb. 24 when Bank of America Merrill Lynch won $258 million of Series 2015A GOLT refunding bonds with a true interest cost of 1.05%.
On the competitive short term slate, the Louisville and Jefferson County, Ky., Metropolitan Sewer District is selling $226 million of Series 2015 sewer and drainage system subordinated bond anticipation notes. The BANs, which are due Nov. 22, 2016, are rated MIG1 by Moody's.
The district last sold BANs on Nov. 4, 2014, to BAML, which won the Series 2014 notes with a TIC of 0.29%.
Bank of America Merrill Lynch is expected to price the Los Angeles Municipal Improvement Corp.'s $298 million of Series 2015A taxable convention center lease revenue refunding bonds on Tuesday. The issue is rated A-plus by S&P and Fitch Ratings.
Wells Fargo Securities is set to priced San Antonio, Texas' $235 million of CPS energy electric and gas system revenue bonds on Tuesday. The bonds are rated Aa1 by Moody's, AA by S&P and AA-plus by Fitch.
On Thursday, Citigroup is set to price the Massachusetts Transportation Fund's $450 million of Series 2015A special obligation revenue bonds under the Rail Enrichment Program after a one-day retail order period on Wednesday. The bonds are rated triple-A by Moody's and S&P.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 30,635 trades on Monday on volume of $5.50 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $63.8 million to $10.01 billion on Tuesday. The total is comprised of $3.69 billion competitive sales and $6.32 billion of negotiated deals.
