Top-rated municipal bonds were slightly weaker at mid-session, according to traders, who were readying a $3.1 billion supply calendar amid a holiday shortened week. Financial markets are open for Election Day on Tuesday but closed Friday for the Veterans Day holiday.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose by as much as one basis point from 1.69% on Friday, while the yield on the 30-year gained as much as one basis point from 2.52%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were weaker on Monday. The yield on the two-year rose to 0.82% from 0.80% on Friday, the 10-year Treasury gained to 1.82% from 1.79% and the yield on the 30-year Treasury bond increased to 2.60% from 2.57%.
On Friday, the 10-year muni to Treasury ratio was calculated at 93.4% compared to 93.9% on Thursday, while the 30-year muni to Treasury ratio stood at 96.9% versus 97.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,101 trades on Friday on volume of $10.80 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 58.00% of new issuance in the week ended Nov. 4, down from 58.31% in the previous week, according to
Some of the most actively traded issues by type in the week were from Puerto Rico, New York & New Jersey and Texas.
In the GO bond sector, the Puerto Rico Commonwealth 8s of 2035 were traded 20 times. In the revenue bond sector, the Port Authority of New York & New Jersey 5.25s of 2056 were traded 64 times. And in the taxable bond sector, the New Hope Cultural Education Facilities Finance Corp., Texas, 4.032s of 2014 were traded 19 times.
Previous Week's Top Underwriters
The top negotiated and competitive underwriters of last week included Bank of America Merrill Lynch, Citigroup, Raymond James & Associates, Piper Jaffray and Goldman Sachs, according to Thomson Reuters data. In the week of Oct. 30-Nov. 5, BAML underwrote $2.32 billion, Citigroup $1.79 billion, Raymond James $911.5 million, Piper $544 million and Goldman $454.2 million.
Week's Primary Market
Supply for the week is estimated at $3.12 billion, comprised of $2.36 billion of negotiated deals and $758 million of competitive sales.
In the competitive arena on Monday, Pasadena, Calif., sold $122.07 million of Series 2016A electric revenue refunding bonds.
Bank of America Merrill Lynch won the deal with a true interest cost of 3.18%. The issue was priced as 5s to yield from 0.80% in 2018 to 2.67% in 2041 and as 4s to yield 2.95% in 2046.
The deal is rated AA-minus by S&P Global Ratings and AA by Fitch Ratings.
While most of the week's deals are set for sale Wednesday, some large offerings will be coming to market on Tuesday.
Bank of America Merrill Lynch is set to price the Chesapeake Bay Bridge and Tunnel District, Va.'s $348 million of Series 2016 first tier general resolution revenue bonds on Tuesday. The deal is rated Baa2 by Moody's Investors Service and BBB by S&P.
Morgan Stanley is expected to price the Virginia Port Authority's $129.4 million of Series 2016A taxable port facilities revenue refunding bonds on Tuesday. The deal is rated A-minus by S&P.
Separately, BAML will price the Virginia Port's $99 million of Series 2016B tax-exempt port facilities revenue refunding bonds, subject to the alternative minimum tax, on Wednesday. The deal is rated A1 by Moody's and A-minus by S&P.
BAML will price Blount County, Tenn.'s $126 million of Series 2016A taxable and Series 2016B tax-exempt general obligation refunding bonds on Tuesday. The deal is rated Aa2 by Moody's and AA by Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $87.4 million to $7.13 billion on Monday. The total is comprised of $2.39 billion of competitive sales and $4.73 billion of negotiated deals.
