Top-quality municipal bonds were weaker at midday, according to traders, who were seeing the first of the week’s new supply light up their screens, led by the big DASNY deal.

Secondary market
The yield on the 10-year benchmark muni general obligation rose one to three basis points from 1.85% on Monday, while the 30-year GO yield increased one to three basis points from 2.67%, according to a read of Municipal Market Data's triple-A scale.

Treasuries were weaker on Tuesday. The yield on the two-year Treasury rose to 1.37% from 1.33% on Monday, the 10-year Treasury yield gained to 2.20% from 2.14% and the yield on the 30-year Treasury bond increased to 2.75% from 2.70%.

On Monday, the 10-year muni to Treasury ratio was calculated at 86.7%, compared with 86.8% on Friday, while the 30-year muni to Treasury ratio stood at 99.1% versus 99.2%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 38,367 trades on Monday on volume of $7.26 billion.

Primary market
Morgan Stanley priced the Dormitory Authority of the State of New York’s $1.75 billion of Series 2017A general purpose state personal income tax revenue bonds for retail investors.

The issue was priced to yield from 0.97% with a 2% coupon in 2019 to approximately 3.345% with a 3.25% coupon in 2040. The 2018 maturity was offered as a sealed bid.

The DASNY deal, which is set to be priced for institutions on Wednesday, is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings.

In the competitive arena on Tuesday, the state of Utah sold $146.33 million of Series 2017 general obligation bonds.

JPMorgan Securities won the bonds with a true interest cost of 1.79%. Pricing information was not immediately available.

The deal is rated triple-A by Moody’s, S&P and Fitch Ratings.

Richmond, Va., sold $226.73 million of GOs in two separate offerings.

Wells Fargo Securities won the $182.8 million of Series 2017B GO public improvement and refunding bonds with a TIC of 2.46%. The issue was priced to yield from 0.87% with a 5% coupon in 2018 to approximately 3.262% with a 3.125% coupon in 2037.

Raymond James won the $43.93 million of Series 2017C taxable public improvement refunding bonds with a TIC of 2.82%.

The deals are rated Aa2 by Moody’s and AA-plus by S&P and Fitch.

The New York City Municipal Water Finance Authority sold $164 million of Fiscal 2018 Series AA water and sewer system second general resolution revenue bonds.

Bank of America Merrill Lynch won the bonds with a TIC of 3.58%.

The $50 million of Block 1 bonds were priced as 5s to yield 2.78% in 2037; the $30 million of Block 2 bonds were priced as 3s to yield approximately 3.136% in 2037; the $20 million of Block 3 bonds were priced as 5s to yield 2.78% in 2037; the $50 million of Block 4 bonds were priced as 5s to yield 2.80% in 2038; and the $14 million of Block 5 bonds were priced as 4s to yield 3.10% in 2038.

The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.

This afternoon, the city of Los Angeles, Calif., will sell $169.41 million of general obligation bonds in two separate offerings.

The sales consist of $86.59 million of Series 2017A taxable GOs and $82.82 million of Series 2017B tax-exempt refunding GOs.

The deals are rated Aa2 by Moody’s, AA by S&P and AA-minus by Fitch.

Also on Tuesday, Wells Fargo Securities is expected to price the Missouri Health and Educational Facilities Authority’s $375 million of taxable educational facilities revenue bonds for Washington University.

The deal is rated Aa1 by Moody’s.

Since 2007 the authority has sold roughly $8.52 billion of securities, with the highest issuance in 2008 when it sold nearly $2 billion. The issuance was lowest in 2007 when it sold $255 million.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $344.1 million to $8.53 billion on Tuesday. The total is comprised of $2.25 billion of competitive sales and $6.29 billion of negotiated deals.

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