Municipals were steady on Tuesday around midday, as market participants saw the first wave of new paper hit, with deals from Montgomery County, Md., and the Phoenix Civic Improvement Corp.

Primary market
Montgomery County, Md., competitively sold $684 million of general obligation bonds in four separate offerings.

JPMorgan won the $291.54 million of Series C consolidated public improvement refunding bonds of 2017 with a true interest cost of 2.07%. The bonds were priced to yield from 1.09% with a 5% coupon in 2019 to 2.90% with a 3% coupon in 2031.

Goldman Sachs won the $170 million of Series A consolidated public improvement bonds of 2017 with a TIC of 1.73%. No pricing information was immediately available.

Wells Fargo won the $144.06 million of Series D 2019 crossover consolidated public improvement refunding bonds of 2017 with a TIC of 2.099%. The bonds were priced to yield from 1.37% with a 3% coupon in 2020 to 2.45% with a 4% coupon in 2029.

And JPMorgan won the $78.715 million of Series B consolidated public improvement refunding bonds of 2017 with a TIC of 1.63%. The deals are rated triple-A by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Also on Tuesday, Citigroup priced the Phoenix Civic Improvement Corp.’s $365.915 million of senior lien airport revenue and revenue refunding bonds. The $191.8 million of alternative minimum tax, series 2017A bonds were priced to yield from 1.17% with a 5% coupon in 2018 to 3.19% with a 5% coupon in 2037. A term bond in 2042 was priced to yield 3.29% with a 5% coupon and a term bond in 2047 was priced to yield 3.35% with a 5% coupon.

The $174.115 million of non-AMT, series 2017B bonds were priced to yield from 1.36% with a 5% coupon in 2021 to 2.97% with a 5% coupon in 2038. The deal is rated Aa3 by Moody’s and AA-minus by S&P.

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.

Siebert Cisneros Shank & Co. priced the Pennsylvania Turnpike Commission’s $396.475 million. The $151.445 million of second series of 2017 subordinate revenue refunding bonds were priced to yield from 2.90% with a 5% coupon in 2028 to 3.44% with a 5% coupon in 2037. This deal is rated A3 by Moody’s, A-minus by Fitch and A-plus by Kroll Bond Rating Agency.

The $245.03 million of second series of 2017 motor license fund-enhanced turnpike subordinate special revenue refunding bonds were priced to yield from 2.46% with a 5% coupon in 2026 to 3.27% with a 5% coupon in 2038. A term bond in 2041 was priced to yield 3.35% with a 5% coupon. This deal is rated A2 by Moody’s and AA-minus by Fitch and Kroll.

Morgan Stanley priced the Massachusetts Development Finance Agency’s $248.995 million of revenue bonds for The Broad Institute for retail investors on Tuesday, ahead of institutional pricing on Wednesday. The bonds were priced for retail to yield from 1.33% with 3% and 5% coupons in a split 2021 maturity to 3.10% with a 3% coupon in 2033. A term bond in 2041 was priced for retail to yield 3.35% with a 4% coupon. No retail was offered in the 2034 through 2037 maturities. The deal is rated Aa3 by Moody’s and AA-minus by S&P.

Bank of America Merrill Lynch priced Maryland Health and Higher Educational Facilities Authority’s $118.955 million of revenue bonds for LifeBridge Health. The bonds were priced to yield from 1.07% with a 4% coupon in 2018 to 3.54% with a 4% coupon in 2037. A term bond in 2042 was priced to yield 3.62% with a 4% coupon and a term bond in 2044 was priced to yield 3.30% with a 5% coupon. The deal is rated A1 by Moody’s and A-plus by S&P.

RBC Capital Markets priced San Marcos Unified School District, Calif.’s $115.7 million of general obligation, election of 2010 refunding bonds. The $5.255 million of 2010 election, Series D bonds were priced to yield from 1.05% with a 3% coupon in 2019 to 1.25% with a 4% coupon in 2021.

The $110.45 million of 2017 GO refunding bonds were priced to yield from 0.97% with a 2% coupon in 2018 to 3.27% with a 4% coupon in 2038. The deal is rated Aa3 by Moody’s and AA-minus by S&P.

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 weaker Tuesday afternoon. The yield on the two-year Treasury nudged up to 1.59% from 1.58%, the 10-year Treasury yield was higher at 2.38% from 2.37% and yield on the 30-year Treasury bond increased to 2.88% from 2.87%.

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 2.338%, 30-year at 2.891%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was slightly stronger on trading early Tuesday afternoon.

The 10-year muni benchmark yield dipped to 2.338% on 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 2.891% 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.

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.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.