Munis were firmer on Tuesday despite several large new-issues, as U.S. Treasury yields richened and equities ended mixed. Oil prices fell as hope grew that the Strait of Hormuz would reopen soon.
Muni yields richened by up to three basis points, depending on the scale. UST yields firmed by three to five basis points.
Both the muni and UST markets are likely anticipating the conclusion of the
Overall, Pruskowski said, the muni market is going through a period of "consolidation, not to be confused with deterioration."
"You have new issues being bumped and secondary offerings being cut, but flows remain robust and supporting an intensive calendar," Pruskowski said. The market is sending a clear message, he said: "It's on strong footing, dealing with a lot of noise."
New-issue market
In the primary market Tuesday, J.P. Morgan priced for the Colorado Health Facilities Authority (Aa2/AA/AA/) $979.78 million of AdventHealth Obligated Group hospital revenue bonds. The first tranche, $184.16 million of Series 2026A, saw 5s of 11/2029 priced at 3.10%, callable 8/2029.
The second tranche, $245.47 million of Series 2026B, saw 5s of 11/2031 priced at 3.36%, callable 8/2031. The third tranche, $304.68 million of Series 2026C, saw 5s of 11/2033 priced at 3.53%, callable 8/2033. The fourth tranche, $245.47 million of Series 2026D, saw 5s of 11/2036 priced at 3.75%, callable 8/2036.
Wells Fargo priced for the Long Island Power Authority (A2/A/A+/) $952.09 million of electric system general revenue bonds. The first tranche, $776.29 million of Series 2026B, partially insured by BAM, saw 5s of 9/2027 priced at 2.48%, 5s of 2031 at 3.04%, 5s of 2036 at 3.46%, 5s of 2041 at 3.96%, 5s of 2046 at 4.26%, 5s of 2051 at 4.52% and 5.25s of 2056 at 4.68%, callable 9/2036.
The second tranche, $175.8 million of fixed rate bonds, Series 2026C, saw 3.4s of 9/2051 priced at par, with a mandatory tender date of 9/2030, callable 3/2030.
Wells Fargo priced for Harris County, Texas, (Aaa///AAA) $639.54 million of refunding bonds and certificates of obligation. The first tranche, $226.56 million of Series 2026A permanent improvement refunding bonds, saw 5s of 9/2027 priced at 2.63%, 5s of 2031 at 3.11%, 5s of 2036 at 3.58%, 5s of 2041 at 4.01%, 5s of 2046 at 4.33%, 5s of 2051 at 4.58% and 5.25s of 2056 at 4.65%, callable 9/2036.
The second tranche, $104.51 million of Series 2026A unlimited tax road refunding bonds, saw 5s of 9/2027 at 2.62%, 5s of 2031 at 3.09%, 5s of 2036 at 3.56%, 5s of 2041 at 3.99%, 5s of 2046 at 4.31%, 5s of 2051 at 4.56% and 5s of 2056 at 4.68%, callable 9/2036.
The third tranche, $155.44 million of Series 2026A permanent improvement tax and revenue certificates of obligations, saw 5s of 9/2027 at 2.63%, 5s of 2031 at 3.11%, 5s of 2036 at 3.58%, 5s of 2041 at 4.01%, 5s of 2046 at 4.33%, 5s of 2051 at 4.58% and 4.5s of 2056 at 4.77%, callable 9/2036.
The fourth tranche, $153.03 million of Series 2026B permanent improvement tax and revenue certificates of obligations, saw 5s of 9/2027 at 2.63%, 5s of 2031 at 3.11%, 5s of 2036 at 3.58%, 5s of 2041 at 4.01%, 5s of 2046 at 4.33%, 5s of 2051 at 4.53% and 5s of 2056 at 4.70%, callable 9/2036.
