Top-shelf municipal bonds were weaker at mid-session, traders said, with yields on some maturities rising by as much as five basis points.
Market participants are seeing new deals hitting the screens in what is one of the busiest days the primary has seen in a while.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose two to four basis points from 1.42% on Monday, while the yield on the 30-year muni was three to five basis points higher from 2.13%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were mostly weaker on Tuesday. The yield on the two-year Treasury was unchanged from 0.67% on Monday, the 10-year Treasury yield rose to 1.54% from 1.49% and the yield on the 30-year Treasury bond increased to 2.29% from 2.23%.
On Monday, the 10-year muni to Treasury ratio was calculated at 94.9% compared to 91.2% on Friday, while the 30-year muni to Treasury ratio stood at 95.2% versus 94.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 30,172 trades on Monday on volume of $11.95 billion.
Primary Market
The nearly $12 billion calendar kicked off Tuesday, as Goldman, Sachs priced New York City's $800 million of general obligation bonds for institutions, following a two-day retail order period.
For institutions, the Fiscal 2017 Series A Subseries A-1 GOs were priced to yield from 0.72% with 3% and 5% coupons in a split 2019 maturity to 2.85% with a 2.75% coupon in 2040; a 2017 maturity was offered as a sealed bid.
For retail, the issue was priced to yield from 0.68% with 3% and 5% coupons in a split 2019 maturity to approximately 2.739% with a 2.625% coupon in 2040. No retail orders were taken in the 2030-2033 or 2037-2038 maturities.
The deal is rated Aa2 by Moody's Investors Service and AA by S&P Global Ratings and Fitch Ratings.
The Big Apple also competitively sold two separate issues of taxable GOs totaling $250 million.
JPMorgan Securities won the $172.95 million of Fiscal 2017 Subseries A-2 taxables with a true interest cost of 2.20%. Pricing information for the deal was not immediately available. Bank of America Merrill Lynch won the $77.06 million of Fiscal 2017 Subseries A-3 taxables with a TIC of 2.66%. The GOs were priced at par to yield 2.52% in 2027 and 2.69% in 2028.
Also in the competitive arena, the state of Minnesota sold four separate issues of GOs totaling almost $788 million.
Barclays Capital won the $301.2 million of Series 2016D state various purpose refunding bonds with a TIC of 1.57%. Pricing information was not immediately available.
Wells Fargo Securities won the $264.25 million of Series 2016A state various purpose bonds with a TIC of 2.29%. The deal was priced as 5s to yield from 0.48% in 2017 to 2.05% in 2036.
Morgan Stanley won the $215 million of Series 2016B state trunk highway bonds with a TIC of 2.13%. Pricing information was not immediately available.
Raymond James won the $7.5 million of Series 2016C taxable state various purpose bonds with a TIC of 1.38% and priced them as 1.40s to yield 1.31% in 2021.
All of the sales are rated Aa1 by Moody's, AA-plus by S&P and triple-A by Fitch.
Since 2006, the Land of 10,000 Lakes has issued $12.43 billion of securities with the largest issuance coming in 2010 when it sold $1.77 billion.
The Miami-Dade County School District, Fla., competitively sold $200 million of Series 2016 GO school bonds.
BAML won the bonds with a TIC of 3.40%. The issue was priced as 5s to yield from 0.62% in 2017 to 2.53% in 2041; a 2046 term bond was priced as 5s to yield 2.58%. The deal is rated Aa3 by Moody's and A-plus by S&P.
Plano Independent School District in Texas sold $257.2 million of Series 2016 unlimited tax school building bonds. Citigroup won the bonds with a TIC of 2.22%.
The issue was priced to yield from 0.58% with a 5% coupon in 2017 to 2.90% with a 3% coupon in 2036. The deal is backed by the Permanent School Fund guarantee program and is rated triple-A by Moody's and S&P.
Ramirez & Co. priced San Antonio, Texas' $338.88 million of Series 2016 general improvement and refunding bonds, combination tax and revenue certificates of obligation, and tax notes.
The $211.94 million of Series 2016 general improvement and refunding bonds were priced to yield from 0.57% with a 5% coupon in 2018 to 2.53% with a 4% coupon in 2036; a 2017 maturity was offered as a sealed bid.
The $98.39 million of Series 2016 combination tax and revenue certificates of obligation were priced to yield from 0.57% with a 5% coupon in 2018 to 2.53% with a 4% coupon in 2036; a 2017 maturity was offered as a sealed bid.
The $28.55 million of Series 2016 tax notes were priced as 5s to yield 0.57% in 2018 and 0.65% in 2019; a 2017 maturity was offered as a sealed bid.
The deal is rated triple-A by Moody's, S&P and Fitch.
Goldman, Sachs priced the Board of Regents of the University of Texas system's $376.03 million of Series 2016F revenue financing system bonds.
The deal was priced at par to yield 2% in 2041 in a stepped coupon bond, as 3s to yield 2.92% in 2045 and as 5s to yield 2.76% in 2047. The deal is rated triple-A by Moody's, S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $656.2 million to $17.54 billion on Tuesday. The total is comprised of $5.80 billion of competitive sales and $11.74 billion of negotiated deals.
