Top-quality municipal bonds were steady at mid-session, according to traders, as New York City floated a water deal on Tuesday.
Secondary Market
The 10-year benchmark muni general obligation yield was unchanged from 2.29% on Monday, while the yield on the 30-year GO was steady from 3.05%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were stronger on Tuesday. The yield on the two-year Treasury declined to 1.19% from 1.20% on Monday, while the 10-year Treasury yield dropped to 2.35% from 2.37%, and the yield on the 30-year Treasury bond decreased to 2.96% from 2.98%.
On Monday, the 10-year muni to Treasury ratio was calculated at 96.8% compared to 98.5% on Friday, while the 30-year muni to Treasury ratio stood at 102.2%, versus 102.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,678 trades on Monday on volume of $7.07 billion.
Primary Market
Siebert Cisneros Shank priced the New York City Municipal Water Finance Authority's $394.79 million of Fiscal 2017 Series EE water and sewer second general resolution revenue bonds for institutions after holding a retail order period on Monday.
The issue was priced for institutions as 5s to yield 3.10% and as 5 1/4s to yield 3.02% in a split 2033 maturity, as 3 1/2s to yield 3.56% in 2035, as 5s to yield 3.27% and as 5 1/4s to yield 3.17% in a split 2036 maturity, as 5s to yield 3.30% and as 5 1/4s to yield 3.20% in a split 2037 maturity, as 3 5/8s to yield 3.70% and at par to yield 3.50% in a 2038 maturity and as 4s to yield 3.66% in a 2039 maturity.
On Monday, the $395.57 million issue was priced for retail as 5s to yield 3.06% in part of a split 2033 maturity, as 3 1/2s to yield 3.55% in 2035, as 5s to yield 3.23% in part of a split 2036 maturity, as 5s to yield 3.26% in part of a split 2037 maturity, as 3 5/8s to yield 3.67% in part of a 2038 maturity and as 4s to yield 3.61% in part of a 2039 maturity. No retail orders were taken in part of a 2033 maturity, or parts of the 2036-2039 maturities.
The deal is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings. The bonds carry a stable outlook from all three rating agencies.
Morgan Stanley is set to price the California Infrastructure and Economic Development Bank's $450 million of clean water state revolving fund revenue green bonds for retail investors ahead of the institutional pricing on Wednesday.
The deal is rated triple-A by S&P and Fitch.
Since 2007, California Ibank has sold about $7.14 billion of bonds, with the most issuance coming in 2008 when it offered $1.87 billion. The bank has been to market every year during that period, with the lowest issuance occurring in 2014 when it sold $109 million of bonds.
Piper Jaffray is expected to price the Douglas County, Neb., Hospital Authority No. 2's $100 million of Series 2017 revenue bonds for Children's Hospital on Tuesday.
The deal is rated A1 by Moody's and AA-minus by Fitch.
In the negotiated sector on Wednesday, RBC Capital Markets is set to price the Oklahoma Development Authority's $251.64 million of Series 2017A tax-exempt and Series 2017B taxable revenue bonds for the Provident Oklahoma Education Resource Inc.'s Cross Village student housing project.
The deal is rated BBB-minus by S&P.
In the competitive arena on Wednesday, Baltimore County, Md., is selling $545 million of notes and bonds in three separate sales.
The offerings consist of $225 million of Series 2017 metropolitan district bond anticipation notes, $121 million of Series 2017 consolidated public improvement BANs, and $199 million of metropolitan district bonds, 79th Issue.
The BANs are rated MIG1 by Moody's, SP1-plus by S&P and F1-plus by Fitch. The bonds are rated triple-A by Moody's, S&P and Fitch.
NYC TFA to Sell $800M Refunding Bonds
The New York City Transitional Finance Authority said it expects to sell $800 million future tax secured subordinate refunding bonds on Tuesday, March 7.
The deal will be priced by book-running senior manager J.P. Morgan Securities, with Bank of America Merrill Lynch, Citigroup, Goldman, Sachs, Jefferies, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, Siebert Cisneros Shank and Wells Fargo Securities serving as co-senior managers.
There will be a two-day retail order period on Friday, March 3 and on Monday, March 6.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $139.9 million to $10.59 billion on Tuesday. The total is comprised of $4.98 billion of competitive sales and $5.60 billion of negotiated deals.
