Munis were stronger at midday on Tuesday, as yields on some maturities were one to three basis points lower, according to traders.
Issuers from New York and Texas are the only deals of noteworthy size hitting the screens.
Primary Market
Barclays Capital won $120.14 million Nassau County, N.Y., Series 2016B general improvement bonds, as with a true interest cost of 2.45%. The bonds were priced to yield from 0.73% with a 5% coupon in 2017 to 2.63% with a 5% coupon in 2030. The issue is rated A2 by Moody's Investors Service, A-plus by Standard & Poor's and A by Fitch Ratings.
The county last competitively sold comparable bonds on May 20, 2015, when JPMorgan won $168.90 million of Series 2015B general improvement bonds with a TIC of 3.78%.
Piper Jaffray priced San Antonio, Texas' $215.39 million of water system junior lien revenue refunding bonds consisting of Series 2016A and Series 2016B taxable bonds. No pricing information was immediately available. The deal is rated Aa2 by Moody's and AA by S&P.
Since 2006, the city of San Antonio has issued bonds an average of 7.2 times a year, selling about $12 billion, with the largest issuances in 2010 and 2012 when it offered $1.5 billion and $2.05 billion, respectively, and the lows in 2006 and 2011, when it issued $719 million and $411 million.
Bank of America Merrill Lynch is set to price the Hawaii County's $235 million of Series 2016 A, B, C, D E, and F taxable general obligation bonds for retail investors on Tuesday ahead of the institutional pricing on Wednesday. The deal is rated Aa2 by Moody's.
Raymond James is set to price Lamar Consolidated Independent School District, Texas's $141.105 million of unlimited tax refunding bonds. The deal is backed by the Permanent School Fund Guarantee Program and is rated triple-A by both Moody's and S&P.
Secondary Market
The yield on the 10-year benchmark muni general obligation was one to three basis points lower from 1.72% on Monday, while the 30-year muni yield was one to three basis points lower from 2.75%, according to a morning read of Municipal Market Data's triple-A scale.
Treasuries were stronger on Tuesday midday. The yield on the two-year Treasury fell to 0.76% from 0.81% on Monday, while the 10-year Treasury yield decreased to 1.87% from 1.96% and the 30-year Treasury bond yield was down to 2.69% from 2.78%.
The 10-year muni to Treasury ratio was calculated on Monday at 87.7% compared to 88.7% on Friday, while the 30-year muni to Treasury ratio stood at 99.2% versus 99.8%, according to MMD.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $642.2 million to $10.23 billion on Tuesday. The total is comprised of $3.32 billion of competitive sales and $6.91 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,523 trades on Monday on volume of $4.854 billion.
