Top-quality municipal bonds were mixed at mid-session, according to traders, as more supply came their way with the upsized New York Metropolitan Transportation Authority’s green bond sale headlining Tuesday’s slate.

Secondary market
The yield on the 10-year benchmark muni general obligation was steady from 1.90% on Monday, while the 30-year GO yield rose as much as one basis point from 2.77%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were slightly weaker on Tuesday. The yield on the two-year Treasury rose to 1.40% from 1.39% on Monday, the 10-year Treasury yield gained to 2.24% from 2.23% and the yield on the 30-year Treasury bond increased to 2.81% from 2.80%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 85.4% compared with 85.8% on Friday, while the 30-year muni-to-Treasury ratio stood at 98.8% versus 99.5%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 32,531 trades on Monday on volume of $6.18 billion.

Primary market
Citigroup priced the N.Y. MTA’s $618.89 million of Series 2017B climate bond certified transportation revenue refunding green bonds for institutions after holding a one-day retail order period. The size of the offering has been increased twice from the originally anticipated $500 million.

The issue was priced for institutions to yield from 1.25% with 4% and 5% coupons in a split 2021 maturity to 2.42% with a 5% coupon in 2028.

On Monday, the issue was structured at $598 million and priced for retail to yield from 1.25% with 4% and 5% coupons in the split 2021 maturity to 2.41% with a 5% coupon in 2028.

The deal is rated A1 by Moody’s Investors Service and A-minus by S&P Global Ratings and Fitch Ratings and AA-plus by Kroll Bond Rating Agency.

Barclays Capital priced the Regents of the University of California’s $860.75 million of Series 2017M tax-exempt and Series 2017N taxable limited project revenue bonds.

The $733.82 million of Series 2017M tax-exempts were priced to yield from 0.67% with a 3% coupon in 2018 to 3.20% with a 3% coupon and 2.81% with a 5% coupon in a split 2037 maturity; a 2042 term bond was priced as 5s to yield 2.95%.

The $126.93 million of Series 2017N taxables were priced to yield from about 10 basis points over the comparable Treasury security in 2018 to about 105 basis points over the comparable Treasury security in 2030.

The deal is rated Aa3 by Moody’s, AA-minus by S&P and AA-minus by Fitch.

Bank of America Merrill Lynch priced the Northeast Ohio Regional Sewer District’s $243.02 million of Series 2017 wastewater improvement refunding revenue bonds.

The issue was priced to yield from 0.91% with a 5% coupon in 2019 to 3.04% with a 4% coupon in 2038; a 2040 maturity was priced as 3 1/4s to yield 3.40% and a 2043 maturity was priced as 4s to yield 3.22%.

The deal is rated Aa1 by Moody’s and AA-plus by S&P.

Goldman Sachs is set to price Ohio’s $342 million of general obligation highway capital improvement bonds on Tuesday.

The deal is rated Aa1 by Moody’s, AAA by S&P and AA-plus by Fitch.

Since 2007, the state has issued $12.14 billion of securities, with the most issuance taking place in 2008, when it sold $2.13 billion of bonds. The Buckeye State saw a low year of issuance in 2013, when it sold $259 million. Tuesday’s sale brings the state issuance above last year's total and makes it the third highest issuance year in the decade.

Ziegler is expected to price the Mayor and Council of Rockville Economic Development Inc., Md.’s $240 million of Series 2017 revenue and revenue refunding bonds for the Ingleside at King Farm project.

The deal is rated BB by Fitch, which assigns the credit a stable outlook.

And Citi expected to price Anchorage, Alaska’s $169 million of tax-exempt Series 2017B water Series 2017B wastewater and taxable Series 2017V wastewater revenue refunding bonds for retail investors ahead of the institutional pricing on Tuesday.

The deal is rated AA by S&P and Fitch.

In the competitive arena on Tuesday, Irving, Texas, sold $107.65 million of Series 2017 combination tax and hotel occupancy tax revenue refunding bonds.

BAML won the bonds with a true interest cost of 3.00%. The issue was priced to yield from 0.86% with a 5.50% coupon in 2018 to 3.32% with a 3.25% coupon in 2039.

The deal is rated triple-A by Moody’s and S&P.

The Brookland Cayce School District No. 2 of Lexington County, Ky., sold $100 million of Series 2017C general obligation bonds.

Citi won the bonds with a TIC of 3.10%. Pricing information was not immediately available.

The deal is rated Aa1 by Moody’s and AA by S&P.

Madison, Wis., sold three separate competitive offerings totaling $103.72 million.

Robert W. Baird won the $76.9 million of general obligation promissory notes with a TIC of 1.69%. Piper Jaffray won the other two sales, taking the $13.87 million of GO corporate purpose bonds with a TIC of 2.59% and the $12.95 million of taxable GO promissory notes with a TIC of 2.35%.

All three deals are rated Aaa by Moody’s.

In the short-term sector, BAML won the Broward County School District, Fla.’s $125 million of Series 2017 tax anticipation notes with a net interest cost of 0.9354%.

The notes, due June 15, 2018, were priced as 2s to yield 0.90%.

The TANs are rated MIG1 by Moody’s.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $1.61 billion to $11.26 billion on Tuesday. The total is comprised of $5.59 billion of competitive sales and $5.67 billion of negotiated deals.

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