Prices of top-rated municipal bonds were unchanged at mid-session, according to traders, as the market looks ahead to this week's $9.2 billion new issue slate. Trading is expected to remain subdued throughout the week, ahead of Friday's release of the April employment report.
Secondary Market
The yield on the 10-year benchmark muni general obligation was flat from 2.16% on Friday, while the yield on the 30-year GO remained at 3.08%, according to a read of Municipal Market Data's triple-A scale.
Treasury prices were little changed on Monday with the yield on the two-year Treasury note unchanged at 0.60% from Friday, while the 10-year yield was flat at 2.11% and the 30-year yield inched up to 2.83% from 2.82%.
The 10-year muni to Treasury ratio was calculated on Friday at 102.2% versus 104.1% on Thursday, while the 30-year muni to Treasury ratio stood at 108.9% compared to 111.2%, according to MMD.
Primary Market
This week's calendar is made up of nearly $6 billion of negotiated deals and about $3.2 billion of competitive sales.
Leading the slate is a $348 million negotiated deal from the Indiana Finance Authority. Goldman, Sachs is expected to price the stadium project and convention center expansion project bonds on Thursday. The sale will benefit the Lucas Oil Stadium and Indiana Convention Center project. The issue is rated Aa2 by Moody's and AA-plus by Standard & Poor's and Fitch Ratings.
Also in the stadium financing sector, Citi is scheduled to price on Thursday the Atlanta Development Authority's $200 million of senior lien and second lien tax-exempt and taxable bonds for the new downtown Atlanta stadium project. The senior bonds are rated Aa3 by Moody's and A-plus by S&P while the second lien bonds are rated A1 by Moody's and A by S&P.
Goldman is expected to price the Los Angeles Community College District's $310 million of GOs on Wednesday after a retail order period on Tuesday. The bonds are rated Aa1 by Moody's and AA-plus by S&P.
Goldman is also slated to price the Florida Mid-Bay Bridge Authority's $279 million of tax-exempt and taxable first senior lien revenue bonds and tax-exempt second senior lien revenue bonds on Tuesday. The first senior lien bonds are rated BBB-plus by Moody's and S&P and the second senior lien bonds are rated BBB by Moody's and S&P.
Loop Capital markets is expected to price New York's Triborough Bridge and Tunnel Authority's $250 million Series 2015A general revenue bonds for MTA bridges and tunnels on Thursday after a retail order period on Wednesday. The bonds are rated Aa3 by Moody's, AA-minus by S&P and Fitch and AA by Kroll Bond Rating Agency.
Turning to the competitive arena, the state of Ohio is selling three separate issues totaling $345 million on Tuesday. The issues consist of $300 million of Series 2015B common schools GOs, $35 million of Series T natural resources GOs, and $10 million of Series 2015B taxable higher education GOs. All three issues are rated Aa1 by Moody's and AA-plus by S&P and Fitch.
The last time Ohio competitively sold common school refunding GOs was on Jan. 7 when Wells Fargo Securities won $72.4 million of Series 2015A with a true interest cost of 2.0699%. The last time Ohio competitively sold natural resources GOs was on June 12, 2012, when FTN Financial Capital Markets won $15.8 million of Series R with a TIC of 1.2726%. The last time Ohio competitively sold higher education refunding GOs was on Jan. 7 when PNC Capital Markets won $28.2 million of Series 2015A with a TIC of 2.1132%.
On Tuesday, the Massachusetts School Building Authority will sell $300 million of Series 2015 senior dedicated sales tax bonds. The issue is rated Aa2 by Moody's. The last time the Massachusetts SBA sold bonds was on Jan. 7 when BAML won $76.32 million of Series 2015A senior dedicated sales tax refunding bonds with a TIC of 0.1341%.
The state of Louisiana is scheduled to sell $335 million of Series 2015A and 2015B various purpose GO refunding bonds on Wednesday. The issue is rated Aa2 by Moody's and AA by S&P and Fitch. The last time the state sold bonds competitively was on Nov. 20, 2014, when Citi won $199.99 million of Series 2014 D01 GOs with a TIC of 3.0317%.
The Los Angeles Unified School District is slated to sell $330 million of Series 2015A GO refunding bonds on Wednesday. The bonds are rated Aa2 by Moody's and AA-minus by S&P. The last time LAUSD sold GOs competitively was on Sept. 22, 2004, when Bank of America Merrill Lynch won $16.9 million of 2004 Series D election of 2004 GOs with a TIC of 2.2031%.
And Seattle is set to offer two separate issues totaling $323 million on Wednesday. The sales consist of $157 million of Series 2015 unlimited tax GO improvement bonds and $166 million of Series 2015A limited tax GO improvement and refunding bonds. Both sales are rated Aa1 by Moody's, triple-A by S&P and AA-plus by Fitch. The last time Seattle sold bonds competitively was on April 1, 2014, when BAML won $62.77 million of Series 2014 limited tax GO improvement and refunding bonds with a TIC of 2.4898%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.040 billion to $13.048 billion on Monday. The total is comprised of $5.153 billion competitive sales and $7.895 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,630 trades on Friday on volume of $11.161 billion.
The most active bond, based on the number of trades, was the New York State Dormitory Authority's Series 2015A dormitory facilities non-state supported debt revenue bonds for the State University of New York 3 5/8s of 2035, which traded 116 times at an average price of 97.663 with an average yield of 3.792%. The DASNY SUNY bonds were initially priced at 97.825 to yield 3.78%.
Last Week's Most Actively Traded Issues
Among some of the most actively traded issues in the week ended May 1, were issuers from Puerto Rico, Ohio and California, according to Markit.
Broken down by market sector, revenue bonds comprised 54.84% of new issuance, up from 54.51% in the prior week. General obligation bonds comprised 37.46% of total issuance, up from 37.28%, while taxable bonds made up 7.70%, down from 8.21%.
In the revenue bond sector, the Allen County, Ohio, hospital facilities 4s of 2044 were traded 86 times. In the GO bond sector, the Puerto Rico commonwealth 8s of 2035 were traded 80 times. And in the taxable bond sector, the Pasadena, Calif. 4 3/4s of 2045 were traded 29 times, according to Markit.
