Top-quality municipal bonds were mixed at mid-session, traders said, as the state of Wisconsin came to market with a sale of general obligation bonds.

Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.88% on Monday, while the 30-year GO yield increased as much as one basis point from 2.72%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were flat on Tuesday. The yield on the two-year Treasury was unchanged from 1.36% on Monday, the 10-year Treasury yield was flat from 2.21% while the yield on the 30-year Treasury bond was steady from 2.87%.

On Monday, the 10-year muni to Treasury ratio was calculated at 85.0%, compared with 85.1% on Friday, while the 30-year muni to Treasury ratio stood at 94.8% versus 95.0%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 35,107 trades on Monday on volume of $6.22 billion.

Primary market
Action got underway as Bank of America Merrill Lynch priced Wisconsin’s $347.54 million of GO refunding bonds of 2017, Series 1.

The issue was priced to yield from 1.22% with a 5% coupon in 2021 to 1.50% with 5% and 3% coupons in a split 2023 maturity and from 1.96% with a 5% coupon in 2026 to 2.45% with a 5% coupon in 2031.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.

Since 2007, Wisconsin had sold about $20.99 billion of securities with the most issuance occurring in 2009 when it sold $2.39 billion.

The Badger State has sold more than $1 billion every year for the past decade, with the lowest yearly total coming in 2007 when it sold $1.14 billion. Tuesday’s sale put the state over the $2 billion mark for second year in a row.

JPMorgan Securities priced the New York City Housing Development Corp.’s $272.73 million of Series 2017 C-1 and C-2 multi-family housing revenue sustainable neighborhood bonds.

The $139.23 million of Series 2017 C-1 bonds were priced at par to yield from 1.20% in 2020 to 2.55% and 2.60% in a split 2028 maturity, 3.10% in 2032, 3.45% in 2037, 3.55% in 2042, 3.65% in 2047, 3.75% in 2052 and 3.85% in 2057.

The $133.5 million of Series 2017 C-2 bonds were priced at par to yield 1.70% in 2011.

The deal is rated Aa2 by Moody’s and AA-plus by S&P.

JPMorgan also priced Tallahassee, Fla.’s $147.8 million of Series 2017 energy system refunding revenue bonds.

The issue was priced as 5s to yield from 1.06% in 2019 to 2.90% in 2037; a 2018 maturity was offered as a sealed bid.

The deal is rated Aa3 by Moody’s and AA by S&P.

Citigroup is expected to price the California Municipal Finance Authority’s $151 million of Series 2017A lease revenue bonds for the Orange County Civic Center infrastructure improvement program’s phase 1.

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

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $1.32 billion to $12.66 billion on Tuesday. The total is comprised of $3.83 billion of competitive sales and $8.84 billion of negotiated deals.

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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.