Top-rated municipal bonds were steady at mid-session, traders said, as the first institutional issuance of the week hit the screens.
Primary Market
Citigroup priced New York City's $900 million of Fiscal 2017 Series C and D general obligation bonds for institutions after holding a two-day retail order period on the deal. The offering was upsized from the original $800 million.
The $877.84 million of Fiscal 2017 Series C bonds were priced for institutions to yield from 1.25% with 3% and 5% coupons in a split 2019 maturity to 3% at par in 2029; a 2018 maturity was offered as a sealed bid.
The $22.17 million of Fiscal 2017 Series D bonds were priced for institutions to yield from 1.25% with a 3% coupon in 2019 to 3% at par in 2029; the 2017 and 2018 maturities were offered as sealed bids.
On Monday, $780.89 million of Fiscal 2017 Series C bonds were priced for retail to yield from 1.29% with 3% and 5% coupons in a split 2019 maturity to 3% at par in 2029; a 2018 maturity was offered as a sealed bid. The $19.18 million of Fiscal 2017 Series D bonds were priced for retail to yield from 1.29% with a 3% coupon in 2019 to 3% at par in 2029; the 2017 and 2018 maturities were offered as sealed bids.
The deal is rated Aa2 by Moody's Investors Service and AA by S&P Global Ratings and Fitch Ratings.
JPMorgan Securities priced the Dormitory Authority of the State of New York's $239.6 million of Series 2017 obligated group revenue bonds for the Orange Regional Medical Center.
The DASNY issue was priced to yield from 2.14% with a 4% coupon in 2018 to 4.54% with a 5% coupon in 2036; a 2037 maturity was priced as 5s to yield 4.58%. A 2017 maturity was offered as a sealed bid.
The deal is rated Baa3 by Moody's and BB-plus by Fitch.
Since 2007, DASNY has issued over $58 billion of debt, with the most issuance occurring in 2015, when it issued $9.09 billion of bonds and was the biggest muni issuer of the year by par amount. DASNY's smallest issuance came in 2013, when it sold $3.03 billion of securities.
Goldman Sachs priced the Trustees of California State University's $827.95 million of Series 2017A tax-exempt systemwide revenue bonds for retail investors ahead of the institutional pricing on Wednesday.
The issue was priced for retail to yield from 0.85% with a 3% coupon in 2017 to 3.33% with a 5% coupon in 2047. No retail orders were taken in the 2033-2036, 2038-2041 or 2043-2046 maturities.
The deal is rated Aa2 by Moody's and AA-minus by S&P.
In the competitive arena, the state of Nevada sold $159.02 million of Series 2017 motor vehicle fuel tax highway improvement revenue bonds.
Bank of America Merrill Lynch won the bonds with a true interest cost of 3.46%. The issue was priced to yield from 2.80% with a 5% coupon in 2030 to 3.35% with a 4% coupon in 2034.
The deal is rated Aa2 by Moody's, triple-A by S&P and AA-minus by Fitch.
The Dekalb County School District, Ga., sold $132.38 million of Series 2017 general obligation sales tax bonds.
JPMorgan won the bonds with a TIC of 1.495%. Pricing information was not immediately available.
The deal is rated Aa1 by Moody's and AA-plus by S&P.
On Wednesday, Citi is expected to price the Salt Lake Department of Airports' $952 million of airport revenue bonds, consisting of Series 2017A bonds subject to the alternative minimum tax and Series 2017B non-AMT bonds. The deal is rated A2 by Moody's and A-plus by S&P.
Citi is also expected to price the state of Oregon's $491 million of tax-exempt and taxable GOs for state seismic and energy projects. The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch.
In the competitive sector on Wednesday, the Fairfax County Water Authority, Va., is selling $198.58 million of Series 2017 water revenue and refunding revenue bonds. The deal is rated triple-A by Moody's, S&P and Fitch.
The state of Washington is competitively selling $103.41 million of Series 2017A state and local agency real and personal property certificates of participation on Wednesday. The deal is rated Aa2 by Moody's.
In the short-term competitive sector, the New York Metropolitan Transportation Authority is set to sell $700 million of notes in two separate sales on Wednesday. The offerings consist of $500 million of Series 2017 Subseries 2017A-1 transportation revenue bond anticipation notes and $200 million of Series 2017 Subseries 2017B-1 transportation revenue bond anticipation notes. The BANs are rated MIG1 by Moody's, SP1-plus by S&P and F1 by Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $152.8 million to $10.77 billion on Tuesday. The total is comprised of $2.04 billion of competitive sales and $8.73 billion of negotiated deals.
Secondary Market
The 10-year benchmark muni general obligation yield was unchanged from 2.30% on Monday, while the yield on the 30-year GO was steady from 3.08%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were narrowly mixed on Tuesday. The yield on the two-year Treasury rose to 1.16% from 1.15% on Monday, while the 10-year Treasury fell to 2.39% from 2.41%, and the yield on the 30-year Treasury bond decreased to 3.03% from 3.05%.
On Monday, the 10-year muni to Treasury ratio was calculated at 95.4% compared to 93.6% on Friday, while the 30-year muni to Treasury ratio stood at 101.1%, versus 99.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,460 trades on Monday on volume of $8.04 billion.
