Municipals mixed as new deals price

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Municipal bonds were mixed at midday as several large deals hit the screens on Tuesday.

Secondary market
The yield on the 10-year benchmark muni general obligation was flat from 1.95% on Monday, while the 30-year GO yield rose one to three basis points from 2.74%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.59% from 1.57% on Monday, the 10-year Treasury yield gained to 2.41% from 2.38% and yield on the 30-year Treasury bond increased to 2.92% from 2.89%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 82.1% compared with 81.9% on Friday, while the 30-year muni-to-Treasury ratio stood at 94.9% versus 94.7%, according to MMD.

AP-MBIS 10-year muni at 2.276%, 30-year at 2.855%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale reflected mixed trading activity at mid-session.

The 10-year muni benchmark yield decreased to 2.276% on Tuesday, compared to the final read of 2.279% on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni gained to 2.855% from 2.848% on Monday.

The AP-MBIS benchmark index is a yield curve built on market data aggregated from MBIS member firms and is updated hourly on the Bond Buyer Data Workstation.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 33,597 trades on Monday on volume of $7.41 billion.

Primary market
Goldman Sachs priced Gainesville, Fla.’s $415.77 million of Series 2017A utility system revenue bonds.

The issue was priced to yield from 1.03% with a 5% coupon in 2018 to 3.24% with a 4% coupon in 2040.

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

Since 2007, the city has issued about $948 million of debt, excluding this week’s sale. Prior to this week, the most issuance occurred in 2008 when the city sold $195 million of debt. The city did not come to market in 2011, 2013, 2015 or 2016.
The Sunshine State was also represented in the competitive arena on Tuesday, where Wells Fargo Securities won the Florida Department of Environmental Protection’s $75.13 million of Series 2017A Florida Forever revenue refunding bonds with a true interest cost of 1.88%.

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

RBC Capital Markets priced the Utility Debt Securitization Authority of New York’s $369.47 million of Series 2017 restructuring bonds, due June 15 and Dec. 15.

The deal was priced as 5s to yield from 1.13% and 1.17% in a split 2022 maturity to 2.76% in 2041.

The deal is rated triple-A by Moody’s, S&P and Fitch.

Jefferies priced Wisconsin’s $382.65 million of general obligation refunding bonds of 2017, Series 2.

The issue was priced as 5s to yield from 1.19% in 2020 to 2.19% in 2028.

The deal is rated Aa1 by Moody’s, AA by S&P, and AA-plus by Fitch and Kroll Bond Ratings Agency.

Also Tuesday, JPMorgan Securities is expected to price the Missouri Health and Educational Facilities Authority’s $291.7 million of Series 2017C health facilities revenue bonds for Mercy Health.

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

And Morgan Stanley is set on Tuesday to price the Philadelphia Hospitals and Higher Education Facilities Authority’s $236.11 million of hospital revenue bonds for the Temple University Health System Obligated Group.

The deal is rated Ba1 by Moody’s, BBB-minus by S&P and BB-plus by Fitch.

Additionally, Raymond James & Associates is expected to price the city and county of San Francisco’s Community Facilities District No. 2014-1 $1200.83 million of Series 2017A special tax bonds and Series 2017B taxable green bonds for the Transbay Transit Center.

On Wednesday, Barclays Capital is set to price Illinois’ $4.5 billion Series of November 2017D general obligation bonds on Wednesday.

The deal is rated Baa3 by Moody’s, BBB-minus by S&P and BBB by Fitch.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $247.1 million to $14.40 billion on Tuesday. The total is comprised of $4.895 billion of competitive sales and $9.51 billion of negotiated deals.

Data appearing in this article from Municipal Bond Information Services, including the AP-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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Primary bond market Secondary bond market State of Illinois State of Wisconsin City of Gainesville, FL Missouri Health & Educational Facilities Authority Philadelphia Hospitals and Higher Education Facilities Authority San Francisco City & County NY Utility Debt Securitization Authority