Top-quality municipal bonds ended unchanged, according to traders, as New York City floated a big water deal on Tuesday.
Siebert Cisneros Shank priced the New York City Municipal Water Finance Authority's $394.79 million of Fiscal 2017 Series EE water and sewer second general resolution revenue bonds for institutions after holding a retail order period on Monday.
The issue was priced for institutions as 5s to yield 3.10% and as 5 1/4s to yield 3.02% in a split 2033 maturity, as 3 1/2s to yield 3.56% in 2035, as 5s to yield 3.27% and as 5 1/4s to yield 3.17% in a split 2036 maturity, as 5s to yield 3.30% and as 5 1/4s to yield 3.20% in a split 2037 maturity, as 3 5/8s to yield 3.70% and at par to yield 3.50% in a 2038 maturity and as 4s to yield 3.66% in a 2039 maturity.
On Monday, the $395.57 million issue was priced for retail as 5s to yield 3.06% in part of a split 2033 maturity, as 3 1/2s to yield 3.55% in 2035, as 5s to yield 3.23% in part of a split 2036 maturity, as 5s to yield 3.26% in part of a split 2037 maturity, as 3 5/8s to yield 3.67% in part of a 2038 maturity and as 4s to yield 3.61% in part of a 2039 maturity. No retail orders were taken in part of a 2033 maturity, or parts of the 2036-2039 maturities.
The deal is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings. The bonds carry a stable outlook from all three rating agencies.
Morgan Stanley priced the California Infrastructure and Economic Development Bank's $450 million of Series 2017 clean water state revolving fund revenue green bonds.
The issue was priced to yield from 1.01% with 2% and 4% coupons in a split 2019 maturity to 2.98% with a 5% coupon in 2036. A 2018 maturity was offered as a sealed bid.
The deal is rated triple-A by Moody's, S&P and Fitch.
Since 2007, California Ibank has sold about $7.14 billion of bonds, with the most issuance coming in 2008 when it offered $1.87 billion. The bank has been to market every year during that period, with the lowest issuance occurring in 2014 when it sold $109 million of bonds.
Morgan Stanley priced the New Jersey Educational Facilities Authority's $99.45 million of revenue and refunding bonds for Ramapo College on Tuesday. The bonds were priced to yield from 1.15% with a 3% coupon in 2018 to 3.75% with a 3.50% coupon in 2036; a 2042 term bond was priced to yield 3.90% with a 3.75% coupon.
The deal was insured by Assured Guaranty Municipal and is rated A2 by Moody's and AA by S&P.
In the negotiated sector on Wednesday, RBC Capital Markets is set to price the Oklahoma Development Authority's $251.64 million of Series 2017A tax-exempt and Series 2017B taxable revenue bonds for the Provident Oklahoma Education Resource Inc.'s Cross Village student housing project.
The deal is rated BBB-minus by S&P.
In the competitive arena on Wednesday, Baltimore County, Md., is selling $545 million of notes and bonds in three separate sales.
The offerings consist of $225 million of Series 2017 metropolitan district bond anticipation notes, $121 million of Series 2017 consolidated public improvement BANs, and $199 million of metropolitan district bonds, 79th Issue.
The BANs are rated MIG1 by Moody's, SP1-plus by S&P and F1-plus by Fitch. The bonds are rated triple-A by Moody's, S&P and Fitch.
Calif. Set to Sell $2.4B GOs Next Week
The state of California is scheduled to hit the market with the biggest bond deal of 2017 when it sells $2.4 billion of various purpose general obligation bonds the week of March 6, according to the state Treasurer's website.
The tax-exempt issue, which is slated to be priced by Citigroup on Tuesday, March 7, is composed of $1.9 billion of GO refunding bonds and $500 million of new money GOs. Public Resources Advisory Group is the financial advisor and Orrick Herrington & Sutcliffe is bond counsel.
Proceeds of the new money bond sale will go to pay for some of the state's outstanding GO commercial paper notes as they become due, while proceeds of the refunding bond sale will be used to current or advance refund some of the state outstanding GOs for debt service savings.
The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
The biggest deal of this year so far has been the New York Triborough Bridge and Tunnel Authority's $1.2 billion general revenue and refunding bond sale in January.
NYC TFA Slates $800M Refunding Sale
The New York City Transitional Finance Authority said it expects to sell $800 million of future tax secured subordinate refunding bonds on Tuesday, March 7.
The deal will be priced by book-running senior manager J.P. Morgan Securities, with Bank of America Merrill Lynch, Citi, Goldman, Sachs, Jefferies, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, Siebert Cisneros Shank and Wells Fargo Securities serving as co-senior managers.
There will be a two-day retail order period on Friday, March 3 and on Monday, March 6.
Secondary Market
The 10-year benchmark muni general obligation yield was unchanged from 2.29% on Monday, while the yield on the 30-year GO was steady from 3.05%, according to the final read of Municipal Market Data's triple-A scale.
Treasuries were narrowly mixed on Tuesday. The yield on the two-year Treasury rose to 1.22% from 1.20% on Monday, while the 10-year Treasury yield dropped to 2.36% from 2.37%, and the yield on the 30-year Treasury bond decreased to 2.97% from 2.98%.
The 10-year muni to Treasury ratio was calculated at 97.1% on Tuesday compared to 96.8% on Friday, while the 30-year muni to Treasury ratio stood at 102.8%, versus 102.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,678 trades on Monday on volume of $7.07 billion.
