Prices of top-rated municipal bonds were flat in quiet mid-session activity, according to traders, as the first of the week's paltry new issue supply came to market.
Secondary Market
The yield on the 10-year benchmark muni general obligation was steady from 2.06% on Friday, while the 30-year yield was unchanged from 3.01%, according to a read of Municipal Market Data's triple-A scale.
Treasury yields were up slightly on Monday. The two-year Treasury yield rose to 0.93% from 0.90% on Friday while the 10-year Treasury yield gained to 2.27% from 2.26% and the 30-year yield was flat from 3.01%.
The 10-year muni to Treasury ratio was calculated on Friday at 91.1% from 92.1% on Thursday, while the 30-year muni to Treasury ratio stood at 99.8% compared to 100.5%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,399 trades on Friday on volume of $7.93 billion.
The Week's Most Actively Traded Issues
Revenue bonds comprised 56.34% of new issuance in the week ended Nov. 20, up from 55.54% in the previous week, according to Markit. General obligation bonds comprised 35.50% of total issuance, down from 37.11%, while taxable bonds made up 8.16%, up from 7.35%.
Some of the most actively traded issues in the week ended Nov. 20 were in New York, Connecticut and California, according to Markit.
In the revenue bond sector, the New York City Municipal Water Finance Authority 5s of 2046 were traded 144 times. In the GO bond sector, the Connecticut 3 1/4s of 2029 were traded 79 times. And in the taxable bond sector, the California 7.55s of 2039 were traded 19 times, Markit said.
Primary Market
Municipal bond traders are set for the quietest week of the year. Total volume is estimated at $783.5 million, which is comprised of $651.8 million of negotiated deals and $131.6 million of competitive sales.
There is only one deal over $100 million on this week's calendar and no competitive issues over $40 million are listed.
On Monday, the Farmington Independent School District No. 192, Minn., sold $33.48 million of Series 2015C unlimited tax general obligation school building refunding bonds under the Minnesota School District Enhancement Program.
Citigroup won the issue with a true interest cost of 1.85%. Pricing information was not immediately available.
The school district last competitively sold comparable bonds on Jan. 12, when Bank of America Merrill Lynch won $22.16 million of Series 2015A GOs with a true interest cost of 2.399%.
On Tuesday, RBC Capital Markets is set to price the Minnesota Housing Finance Agency's $136.45 million of residential housing finance bonds.
The deal is made up of $96.93 million of Series 2015E alternative minimum tax bonds and $39.52 million of Series 2015 F non-AMT bonds. The issue is rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's.
Kutak Rock is bond counsel and CSG Advisors is the financial advisor on the deal. The deal is rated Aa1 by Moody's Investors Service and AA-plus by Standard and Poor's.
Also on Tuesday, Wells Fargo Securities is scheduled to price the Mississippi Development Bank's Municipal Energy Agency's $86.72 million of power supply refunding bonds. The deal is slated to mature serially from 2016 to 2035 and includes a term bond in 2041. At least part of the deal is to be insured by Assured Guaranty Municipal. The issue is rated A2 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $1.34 billion to $6.36 billion on Monday. The total is comprised of $3.34 billion competitive sales and $3.02 billion of negotiated deals.
