Top quality municipal bonds were unchanged at mid-session, according to traders as the first of the week's big new deals started to hit the market.
Secondary Market
The yield on the 10-year benchmark muni general obligation on Tuesday was flat from 1.72% on Monday, while the yield on the 30-year was steady at 2.54%, 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 was flat from 0.84% on Monday, the 10-year Treasury yield fell to 1.75% from 1.76% and the yield on the 30-year Treasury bond decreased to 2.50% from 2.52%.
On Monday, the 10-year muni to Treasury ratio was calculated at 97.7% compared to 99.1% on Friday, while the 30-year muni to Treasury ratio stood at 101.0% versus 102.0%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,649 trades on Monday on volume of $6.27 billion.
Primary Market
Bank of America Merrill Lynch priced a $419.42 million deal for the Piedmont Healthcare Inc. project in Georgia in three sections.
The Fulton County Development Authority's $195.54 million of Series 2016A revenue bonds were priced to yield from 1.14% with a 5% coupon in 2018 to 3.59% with a 4% coupon in 2036; a split 2041 maturity was priced as 3 5/8s to yield 3.80% and as 4s to yield 3.69% and a split 2046 maturity was priced as 4s to yield 3.74% and as 5s to yield 3.34%. A 2017 maturity was offered as a sealed bid.
The Hospital Authority of Clarke County's $175.55 million of Series 2016A revenue anticipation certificates were priced to yield from 1.14% with a 5% coupon in 2018 to 3.19% with a 5% coupon in 2036; a 2041 maturity was priced as 4s to yield 3.69% and a 2046 maturity was priced as 5s to yield 3.34%. A 2017 maturity was offered as a sealed bid.
The Hospital Authority of Fayette County's $47.64 million of Series 2016A revenue anticipation certificates were priced as 5s to yield 2.03% in 2024, 2.20% in 2025, 3.12% in 2034, 3.16% in 2035, 3.19% in 2036 and 3.34% in 2046.
The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings.
Wells Fargo Securities priced the Virginia Commonwealth Transportation Board's $317.14 million of Series 2016 federal transportation grant anticipation notes.
The issue was priced to yield from 0.88% with a 4% coupon and 0.93% with a 5% coupon in a split 2018 maturity to 2.43% with a 5% coupon in 2031. A split 2017 maturity was offered as a sealed bid.
The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch Ratings.
Since 2006, the CTB has sold $4 billion of securities, with the largest issuance occurring in 2012, when it sold $1.19 billion. It did not sell any bonds in 2008 or 2015. Including Tuesday's sale, the CTB has issued $666 million of debt so far this year, the highest amount since 2012.
Morgan Stanley priced the Board of Regents of the University of Teas System's $185.28 million of Series 2016I revenue financing system refunding bonds.
The issue was priced as 5s to yield from 0.89% in 2018 to 1.66% in 2024. The deal is rated triple-A by Moody's, S&P and Fitch.
In the competitive arena on Tuesday, the city and county of Denver, Colo., sold $115 million of Series 2016 wastewater enterprise revenue bonds.
BAML won the issue with a true interest cost of 3.14%. Pricing information was not immediately available. The deal is Aa1 by Moody's and triple-A by S&P and Fitch.
The issuer last sold comparable bonds competitively on Jan. 11. 2012, when JPMorgan Securities won $50.43 million of Series 2012 wastewater enterprise revenue bonds with a TIC of 2.26%.
RBC Capital Markets is expected to price Butler County, Ohio's $210 million of Series 2016 hospital facilities revenue bonds for UC Health on Tuesday. The deal is rated A2 by Moody's and A by S&P.
Citigroup is expected to price the Salem Hospital Facilities Authority, Ore.'s $195 million of Series 2016A revenue refunding bonds for Salem Health projects. The deal is rated A-plus by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $623.5 million to $21.34 billion on Tuesday. The total is comprised of $4.18 billion of competitive sales and $17.16 billion of negotiated deals.
