Top-rated municipal bonds were unchanged at mid-session, traders said, as a New York issuer sold about $1.5 billion in six competitive offerings.

Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.93% on Monday, while the 30-year GO yield rose as much as two basis points from 2.73%, according to a read of Municipal Market Data's triple-A scale.

Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.36% from 1.35% on Monday, the 10-year Treasury yield gained to 2.29% from 2.26% and the yield on the 30-year Treasury bond increased to 2.87% from 2.84%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 85.5%, compared with 85.1% on Friday, while the 30-year muni-to-Treasury ratio stood at 96.2% versus 96.6%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 34,572 trades on Monday on volume of $7.39 billion.

Primary market
Action was concentrated in the competitive arena, with the majority of supply coming from three issuers.

The New York City Transitional Finance Authority sold $1.5 billion of fiscal 2018 future tax secured subordinate bonds in six separate offerings.

Bank of America Merrill Lynch won the $411.95 million of Subseries A-3 tax-exempts with a true interest cost of 3.74%. The issue was priced to yield from 2.93% with a 5% coupon in 2040 to 3.36% with a 4% coupon in 2045.

RBC Capital Markets won the $406.82 million of Subseries A-2 tax-exempts with a TIC of 3.63%. Pricing information was not immediately available.

TFA also sold $225.91 million of Subseries A-5 taxables; information was not immediately available.

JPMorgan Securities won the $181.24 million of Subseries A-1 tax-exempts with a TIC of 1.29%. Pricing information was not immediately available.

Citigroup won the $162.13 million of Series 1 bonds with a TIC of 2.11%. The issue was priced as 5s to yield from 1.26% in 2022 to 2.32% in 2029.

JPMorgan won the $124.095 million of Subseries A-4 taxables with a TIC of 2.99%. Pricing information was not immediately available.

The deals are rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.

The Louisville and Jefferson County Metropolitan Sewer District, Ky., sold $215.53 of sewer and drainage system revenue and revenue refunding bonds in two separate offerings.

BAML won the $175 million of Series 2017A revenue bonds with a TIC of 3.36%. The issue was priced to yield from 0.93% with a 5% coupon in 2019 to 3.35% with a 4% coupon in 2044; a 2046 maturity was priced as 3 1/4s to yield 3.44% and a 2048 maturity was priced as 4s to yield 3.38%.

TD Securities won the $40.53 million of revenue refunding bonds with a TIC of 1.68%. The deals are rated Aa3 by Moody’s and AA by S&P.

The Virginia Public School Authority sold $103.44 million of Series 2017B school financing refunding bonds under the 1997 resolution.

Morgan Stanley won the bonds with a TIC of 2.38%. Pricing information was not immediately available.

The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.

And there was no slacking off in the negotiated sector either.

Morgan Stanley priced Philadelphia’s $273.76 million of gas works revenue bonds, 15th Series issued under the 1998 general ordinance.

The issue was priced to yield from 1.14% with a 3% coupon in 2019 to 3.15% with a 5% coupon in 2037; a 2042 maturity was priced as 5s to yield 3.27% and a 2047 maturity was priced as 5s to yield 3.33%.

The deal is rated A3 by Moody’s, A by S&P and BB-plus by Fitch.

JPMorgan Securities is set to price the Ohio Higher Educational Facilities Commission’s approximately $1 billion of Series 2017A tax-exempt and 2017B taxable hospital refunding revenue bonds for the Cleveland Clinic Health System Obligated Group for institutions after a one-day retail order period.

On Monday, the $824.23 million of Series 2017A tax-exempts were priced for retail to yield from 0.96% with a 3% coupon in 2019 to 3.42% with a 5% coupon in 2039. A 2043 term bond was priced as 4s to yield 3.50%.

The deal is rated Aa2 by Moody’s and AA by S&P.

Since 2007 the Ohio HEFC has sold $4.08 billion of securities. Before this year, the largest issuance in the period occurred in 2008 when it sold $696 million. The commission saw a low year of issuance in 2011 when it sold $60.8 million.

And Roosevelt & Cross is expected to price the city of Yonkers, N.Y.’s $149.61 million of general obligation bonds.

The deal is rated A2 by Moody’s and A by S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $636.1 million to $12.01 billion on Tuesday. The total is comprised of $6.48 billion of competitive sales and $5.53 billion of negotiated deals.

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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.