The first of the week's new issuance starting to roll in on Tuesday, with both the negotiated and competitive sectors seeing big deals.

Top-rated municipal bonds were trading as much as six basis points lower at mid-session.

Primary market
Goldman Sachs priced and repriced the Salt River Project Agricultural Improvement and Power District, Ariz.’s $739.61 million of Series 2017A electric system revenue bonds to lower yields by as much as 10 basis points in some maturities.

The issue was repriced as 5s to yield from 1.24% in 2021 to 2.62% in 2039.

The deal is rated Aa1 by Moody’s Investors Service and AA by S&P Global Ratings.

Since 2008, the district has issued about $5.67 billion of debt with the most issuance occurring in 2009 when it sold $1.04 billion. It did not come to market in 2013 or 2014.

Siebert Cisneros Shank priced for retail the New York Triborough Bridge and Tunnel Authority’s $528.02 million of Series 2017C general revenue refunding bonds for MTA bridges and tunnels.

The issue was priced to yield from 1.62% with a 5% coupon in 2023 to 2.26% with a 5% coupon in 2028.

The deal is rated Aa3 by Moody’s and AA-minus by S&P and Fitch Ratings.

Citigroup priced Broward County, Fla.’s $290 million of Series 2017 airport system revenue bonds subject to the alternative minimum tax.

The issue was priced as 5s to yield from 1.51% in 2020 to 3.02% in 2037, 3.10% in 2042 and 3.15% in 2047.

The deal is rated A1 by Moody’s and A-plus by S&P.

Bank of America Merrill Lynch priced the Connecticut Health and Educational Facilities Authority $135.07 million of tax-exempt Series I-1 revenue bonds and $26.06 million of Series I-2 taxable revenue bonds for Sacred Heart University.

The tax-exempts were priced as 5s to yield from 1.12% in 2018 to 3.03% in 2037 and 3.08% in 2042; the taxables were priced at par to yield from 1.793% in 2018 to 3.357% in 2028.

The deal is rated A3 by Moody’s and A by S&P.

Also Tuesday, JPMorgan Securities is expected to price the Board of Regents of the University of Texas’ $300 million of system permanent fund taxable bonds.

The deal carries ratings of triple-A from Moody’s, S&P and Fitch.

In the competitive arena, the Virginia College Building Authority sold $136.25 million of educational facilities revenue bonds, public higher education financing program, and taxable bonds in two separate sales.

Citi won the $111.46 million of Series 2017A tax-exempts with a true interest cost of 2.6838%.

The issue was priced to yield from 1.03% with a 5% coupon in 2018 to 3.15% with a 3% coupon in 2037.

Janney won the $24.89 million of Series 2017B taxables with a TIC of 3.0968%.

The deals are rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.

The County Commissioners of Charles County, Md., sold $102.37 million of consolidated public improvement and refunding bonds of 2017.

BAML won the bonds with a TIC of 2.1426%. The issue was priced to yield from 1% with a 5% coupon in 2018 to 3.15% with a 3% coupon in 2037. A 2042 maturity was priced as 3 1/8s to yield 3.28% while a 2047 maturity was priced as 3 1/4s to yield 3.36%.

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

In the afternoon, the Florida Board of Education is selling $242.08 million of Series 2017A lottery revenue refunding bonds.

The deal is rated A1 by Moody’s, AAA by S&P and AA by Fitch.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $101.4 million to $12.06 billion on Tuesday. The total is comprised of $4.54 billion of competitive sales and $7.52 billion of negotiated deals.

Secondary market
The yield on the 10-year benchmark muni general obligation fell one to three basis points from 1.96% on Monday, while the 30-year GO yield dropped four to six basis points from 2.68%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were mixed on Tuesday. The yield on the two-year Treasury rose to 1.62% from 1.61%, the 10-year Treasury yield dipped to 2.31% from 2.32% and yield on the 30-year Treasury dropped to 2.77 from 2.79%.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 82.5% compared with 84.9% on Friday, while the 30-year muni-to-Treasury ratio stood at 94.8% versus 97.4%, according to MMD.

AP-MBIS 10-year muni at 2.247%, 30-year at 2.783%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was stronger at midday.

The 10-year muni benchmark yield fell to 2.247% from 2.285% from the final read on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield declined to 2.783% from 2.840%.

The AP-MBIS benchmark index is a yield curve built on market data aggregated from MBIS member firms and is updated hourly on the Bond Buyer Data Workstation.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 34,871 trades on Monday on volume of $8.56 billion.

Data appearing in this article from Municipal Bond Information Services, including the AP-MBIS municipal bond index, is available on the Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.