Municipals were flat on Tuesday morning, as market participants wait for the first new paper of the week, with deals expected from Montgomery County, Md., and the Phoenix Civic Improvement Corp..

Secondary market
The yield on the 10-year benchmark muni general obligation was steady at 2.01% from Monday, while the 30-year GO yield was also unchanged from 2.83%, according to a read of Municipal Market Data`s triple-A scale.

U.S. Treasuries were mostly unchanged on Tuesday morning. The yield on the two-year Treasury was flat at 1.58% from Monday, the 10-year Treasury yield was steady at 2.37% and yield on the 30-year Treasury bond decreased to 2.87% from 2.88%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 84.8% compared with 83.2% on Friday, while the 30-year muni-to-Treasury ratio stood at 98.2% versus 96.7%, according to MMD.

AP-MBIS 10-year muni at 2.330%, 30-year at 2.893%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was slightly stronger on early trading on Tuesday.

The 10-year muni benchmark yield dipped to 2.330% on Tuesday morning from the final read of 2.336% on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield declined to 2.893% from 2.896% 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 36,354 trades on Monday on volume of $8.324 billion.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $450 million to $10.98 billion on Tuesday. The total is comprised of $4.77 billion of competitive sales and $6.21 billion of negotiated deals.

Primary market
The first round of issuance is expected to hit on Tuesday when Montgomery County, Md., competitively sells $684 million of general obligation bonds in four separate offerings.

The deals consist of $291.54 million of Series C consolidated public improvement refunding bonds of 2017, $170 million of Series A consolidated public improvement bonds of 2017, $144.06 million of Series D 2019 crossover consolidated public improvement refunding bonds of 2017, and $78.72 million of Series B consolidated public improvement refunding bonds of 2017. The deals are rated triple-A by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Also on Tuesday, Citigroup is expected to price the Phoenix Civic Improvement Corp.’s $401 million of senior lien airport revenue and revenue refunding bonds.

Since 2007, the corporation has issued about $5.8 billion of debt with the most issuance occurring in 2014 when it sold $726 million and the least happening in 2012 when it sold $66 million.

The issue is composed of Series 2017A bonds subject to the alternative minimum tax, Series 2017B non-AMT bonds, and Series 2017C taxables. The deal is rated Aa3 by Moody’s and AA-minus by S&P.

And Siebert Cisneros Shank & Co. is expected to price the Pennsylvania Turnpike Commission’s $346.72 million of second series of 2017 subordinate revenue refunding bonds and second series of 2017 motor license fund-enhanced turnpike subordinate special revenue refunding bonds.

The revenue bonds are rated A3 by Moody’s, A-minus by Fitch and A-plus by Kroll Bond Rating Agency; the special revenue bonds are rated A2 by Moody’s and AA-minus by Fitch and Kroll.

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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Aaron Weitzman

Aaron Weitzman

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