Municipal bonds were mostly stronger at mid-session, according to traders, as yields on some top-quality maturities were steady to as much as two basis points weaker.
Secondary Market
The yield on the 10-year benchmark muni general obligation was as much as two basis points weaker from 1.87% on Monday, while the 30-year yield was steady from 2.77%, 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 Treasury fell to 1.02% from 1.03% on Monday, while the 10-year Treasury yield rose to 2.24% from 2.23% and the 30-year Treasury bond yield increased to 3.00% from 2.98%.
The 10-year muni to Treasury ratio was calculated on Monday at 83.5% compared with 84.4% on Thursday, while the 30-year muni to Treasury ratio stood at 92.8% versus 93.5%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,932 trades on Monday on volume of $5.84 billion.
Primary Market
This week's calendar totals $3.33 billion, consisting of $2.86 billion of negotiated deals and $472.8 million of competitive sales.
William Blair & Co. priced the Allen Independent School District, Texas' $146.89 million of Series 2016 unlimited tax school building bonds on Tuesday.
The issue was priced to yield from 1.66% with a 3% coupon in 2023 to 2.89% with a 5% coupon in 2041. A 2017 maturity was offered as a sealed bid.
The bonds are backed by the Permanent School Fund guarantee program and are rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
The Board of Regents of the University of Texas will be coming to market this week with two negotiated deals totaling $450 million.
Bank of America Merrill Lynch on Tuesday priced the $200 million of Series 2016B revenue financing system green bonds for retail investors. The issue was structured with step coupons that increase over the life of the deal; it was priced for retail at par to yield 2.50% in 2036 and 2046.
BAML is also expected to price the $250 million of Series 2016A taxable revenue financing system bonds on Thursday.
Both series are rated triple-A by Moody's, S&P and Fitch.
BAML is also expected to price the South Carolina Public Service Authority's $382 million of revenue obligation Series 2016A tax-exempt refunding bonds on Thursday.
Additionally, BAML is slated to price the city of Tallahassee, Fla.'s $150 million of Series 2016A project healthcare facilities revenue bonds for Tallahassee Memorial Healthcare Inc. The issue is rated Baa1 by Moody's.
Wells Fargo Securities is expected to price the New Jersey Healthcare Facilities Authority's $200 million of bonds for the Princeton Healthcare System on Wednesday. The issue is rated Baa2 by Moody's and triple-B by Fitch.
Stifel is set to price Orange County, Calif.'s $334.31 million of taxable Series 2016A pension obligation bonds on Thursday. The issue is rated AA by S&P and Fitch.
And JPMorgan Securities is set to price on Thursday the KU Central Development Corp.'s $333.18 million of Series 2016 lease revenue bonds, which are being issued through the Wisconsin Public Finance Authority. The issue is rated Aa2 by Moody's.
In the competitive arena, the Massachusetts School Building Authority will sell $150 million of Series 2016A senior dedicated sales tax bonds on Wednesday. The deal is rated Aa2 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
On the short-term slate, Colorado will sell by competitive bid $339 million of Series 2015B education loan program tax and revenue anticipation notes. The TRANS, which are selling on Wednesday, are due June 29.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $363.1 million to $8.69 billion on Tuesday. The total is comprised of $4.44 billion competitive sales and $4.25 billion of negotiated deals.
