Top-rated municipal bonds finished mixed on Tuesday, traders said, as a New York City issuer sold over $1.5 billion in six competitive offerings.

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%. The issue was priced as 5s to yield from 2.66% in 2033 to 2.86% in 2039.

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 Securities won the $225.91 million of Subseries A-5 taxables with A TIC of 3.44%. Additionally, JPMorgan won the $181.24 million of Subseries A-1 tax-exempts with a TIC of 1.29%. JPMorgan also won the $124.095 million of Subseries A-4 taxables with a TIC of 2.99%. Pricing information on these deals was not 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 $210.73 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 $35.73 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 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.

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

The $818.78 million of Series 2017A tax-exempts were priced for institutions to yield from 0.83% with a 3% coupon in 2019 to 3.36% with a 5% coupon in 2039. A 2043 maturity was priced as 4s to yield 3.39%.

The $164.87 million of Series 2017 taxables were priced to yield from 20 basis points over the comparable Treasury security in 2019 to 100 basis points over the comparable Treasury security in 2032 and 85 basis points over the comparable Treasury security in 2043.

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.

Morgan Stanley priced Philadelphia’s $273.97 million of gas works revenue bonds, 15th series issued under the 1998 general ordinance.

The issue was priced to yield from 0.91% with a 2% coupon in 2018 to 3.12% with a 5% coupon in 2037; a 2042 maturity was priced as 5s to yield 3.24% and a 2047 maturity was priced as 5s to yield 3.30%.

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

Secondary market
The yield on the 10-year benchmark muni general obligation finished unchanged from 1.93% on Monday, while the 30-year GO yield rose two basis points to 2.75% from 2.73%, according to the final 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 2.28% from 2.26% and the yield on the 30-year Treasury bond increased to 2.86% from 2.84%.

The 10-year muni-to-Treasury ratio was calculated at 84.5% on Tuesday, compared with 85.5% on Monday, while the 30-year muni-to-Treasury ratio stood at 95.9% versus 96.2%, 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.

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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.