Municipals mixed as new deals price

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.

BB-102517-MUN

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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