Top-shelf municipal bonds were stronger at mid-session, according to traders, as the state of Georgia and a Maryland issuer competitively sold a bevy of big, high-quality offerings.
The yield on 10-year benchmark muni general obligation was as much as one basis point weaker from 1.62% on Monday, while the 30-year muni yield was as much as two basis points weaker from 2.40%, according to a midday read of Municipal Market Data's triple-A scale.
U.S. Treasuries were slightly stronger on Monday. The yield on the two-year Treasury slipped to 0.78% from 0.79% on Monday, while the 10-year Treasury yield dipped to 1.71% from 1.72% and the yield on the 30-year Treasury bond declined to 2.53% from 2.54%.
The 10-year muni to Treasury ratio was calculated at 94.1% on Monday compared to 95.1% on Friday, while the 30-year muni to Treasury ratio stood at 94.3% versus 95.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,471 trades on Monday on volume of $10.21 billion.
Primary Market
Georgia competitively sold about $1.37 billion of bonds in five separate offerings.
Citigroup won the $382.19 million of Series 2016C-1 and C-2 general obligation refunding bonds with a true interest cost of 1.49%. Pricing information was not immediately available.
JPMorgan Securities won the $361.64 million of Series 2016A Tranche 1 GOs with a TIC of 1.24%. JPMorgan also won the $355.66 million of Series 2016A Tranche 2 GOs with a TIC of 2.69%. And JPMorgan won the $199.87 million of Series 2016B taxable GOs with a TIC of 2.57%. Pricing information was not immediately available.
Morgan Stanley won the $67.99 million of Series 2016D taxable refunding GOs with a TIC of 1.78%. Pricing information was not immediately available.
All five sales are rated triple-A by Moody's Investors Service, S&P Global Ratings and Fitch Ratings.
Since 2006, the Peach State has sold about $13 billion of bonds, with the most issuance occurring in 2009 when it sold $2.51 billion and the least happening in 2008 when it sold $522.5 million.
Also on Tuesday, Prince George's County, Md., competitively sold $177 million of GOs in two separate offerings.
Bank of America Merrill Lynch won the $115.8 million of Series 2016A GO consolidated public improvement bonds with a TIC of 2.197%. Pricing information was not immediately available.
BAML also won the $61.55 million of Series 2016B GO consolidated public improvement refunding bonds with a TIC of 1.577%. Both deals are rated triple-A by Moody's, S&P and Fitch.
In the negotiated sector on Tuesday, JP Morgan priced the District of Columbia's $429.49 million of Series 2016A of GO bonds.
The issue was priced to yield from 0.75% with a 3% coupon in 2018 to 2.76% with a 4% coupon in 2036; a triple-split 2041 maturity was priced as 3s to yield 3.10% as 4s to yield 2.85% and as 5s to yield 2.60%. The deal is rated Aa1 by Moody's and AA by S&P and Fitch.
Barclays Capital priced the Pennsylvania State University's $351.08 million of Series 2016A bonds and Series 2016B refunding bonds.
The $123.06 million of Series 2016A bonds were priced to yield from 0.74% with a 4% coupon in 2017 to 2.49% with a 5% coupon in 2036; a 2041 term bond was priced as 5s to yield 2.60%. The $228.02 million of Series 2016B refunding bonds were priced to yield from 0.74% with a 4% coupon in 2017 to 2.79% with a 4% coupon in 2036. The deal is rated Aa1 by Moody's and AA by S&P.
Citi is expected to price the New York Transportation Development Corp.'s $850 million of special facility revenue refunding AMT bonds for the American Airlines JFK Project.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $507.3 million to $17.06 billion on Tuesday. The total is comprised of $7.80 billion of competitive sales and $9.26 billion of negotiated deals.
