Top-quality municipal bonds were unchanged at mid-session, traders said, as the market sees some volume hit the screens while the country heads to the polls on Election Day.
Financial markets are open, but will be closed Friday for the Veterans Day holiday. Over $70 billion of bond referendums are on the ballot Tuesday across the United States, the most bond votes since 2006.
Secondary Market
The yield on the 10-year benchmark muni general obligation was steady from 1.70% on Monday, while the yield on the 30-year was flat from 2.53%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were weaker on Tuesday. The yield on the two-year rose to 0.85% from 0.82% on Monday, the 10-year Treasury gained to 1.85% from 1.83% and the yield on the 30-year Treasury bond increased to 2.62% from 2.60%.
On Monday, the 10-year muni to Treasury ratio was calculated at 93.1% compared to 93.4% on Friday, while the 30-year muni to Treasury ratio stood at 97.3% versus 96.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,103 trades on Monday on volume of $6.46 billion.
Primary Market
Supply for the week is estimated at $3.12 billion, comprised of $2.36 billion of negotiated deals and $758 million of competitive sales.
While most of the week's deals are set for sale Wednesday, some large offerings will be coming to market on Tuesday.
Bank of America Merrill Lynch priced the Chesapeake Bay Bridge and Tunnel District, Va.'s $324.03 million of Series 2016 first tier general resolution revenue bonds on Tuesday.
The issue was priced to yield 3.23% with a 5% coupon in 2041, 3.43% with a 5% coupon in 2046, 3.53% with a 5% coupon in 2051 and 4.05% with a 4% coupon in 2055.
The deal is rated Baa2 by Moody's Investors Service and BBB by S&P Global Ratings except for the 2041 and 2055 maturities, totaling $106.14 million, which are insured by Assured Guaranty Municipal and rated A2 by Moody's and AA by S&P.
BAML is set to price Blount County, Tenn.'s $126 million of Series 2016A taxable and Series 2016B tax-exempt general obligation refunding bonds on Tuesday.
The deal is rated Aa2 by Moody's and AA by Fitch Ratings.
Morgan Stanley is expected to price the Virginia Port Authority's $129.4 million of Series 2016A taxable port facilities revenue refunding bonds. The deal is rated A-minus by S&P.
Separately, BAML will price the Virginia Port's $99 million of Series 2016B tax-exempt port facilities revenue refunding bonds, subject to the alternative minimum tax, on Wednesday.
The deal is rated A1 by Moody's and A-minus by S&P.
Since 2006, the Port Authority has issued about $877.3 million of debt, with the most issuance prior to this year occurring in 2015, when it sold $200.6 million of bonds. The authority did not come to market in 2008, 2009, 2013, and 2014.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $13.4 million to $7.14 billion on Tuesday. The total is comprised of $2.50 billion of competitive sales and $4.63 billion of negotiated deals.
