New York City offered $850 million of general obligation bonds and the Metropolitan St. Louis Sewer District, Mo., offered a $317 million refunding deal to retail investors on Monday as the Pennsylvania Turnpike came to market with its bonds.

Secondary market
The MBIS municipal non-callable 5% GO benchmark scale was stronger at mid-session.

The 10-year muni benchmark yield fell to 2.336% on Monday from the final read of 2.356% on Friday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield decreased to 2.809% from 2.852%.

The MBIS benchmark index is updated hourly on the Bond Buyer Data Workstation.

Top-rated municipals were stronger at midday. The yield on the 10-year benchmark muni general obligation fell as much as two basis points on Monday from 2.07% on Friday, while the 30-year GO yield dropped as much as two basis points from 2.68%, according to a read of MMD’s triple-A scale.

U.S. Treasuries were weaker. The yield on the two-year Treasury rose to 1.81% from 1.77%, the 10-year Treasury yield gained to 2.39% from 2.36% and the yield on the 30-year Treasury increased to 2.79% from 2.76%.

On Friday, the 10-year muni-to-Treasury ratio was calculated at 87.6% compared with 89.1% on Wednesday, while the 30-year muni-to-Treasury ratio stood at 97.1% versus 98.6%, according to MMD.

Prior week's actively traded issues
Revenue bonds comprised 55.98% of new issuance in the week ended Dec. 1, up from 55.43% in the previous week, according to Markit.

General obligation bonds made up 38.83% of total issuance, down from 39.27%, while taxable bonds accounted for 5.19%, down from 5.30% a week earlier.

Primary market
This week’s muni supply volume will surge to $17.39 billion. The calendar is made up of $15.51 billion of negotiated deals and $1.88 billion in competitive sales.

Action kicked off Monday Ramirez & Co. as priced NYC’s $850 million of Fiscal 2018 Series C and D GOs on the first day of the retail order period.

The GOs will be priced for institutions on Wednesday

The $799.36 million of GOS were priced for retail to yield from 1.60% with 4% and 5% coupons in a split 2019 maturity to 2.98% with a 4% coupon in 2034.

The $50.65 million of Series D GOs were priced to yield from 1.27% with a 2% coupon in 2018 to 3.20% with a 3.125% coupon in 2035.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.

Barclays Capital priced the Metropolitan St. Louis Sewer District, Mo.’s $317.77 million of Series 2017A wastewater system improvement and refunding revenue bonds for retail investors.

The issue was priced to yield from 1.49% with a 3% coupon in 2019 to

No retail orders were taken in the 2020-2031, 2033-2026, 2042 or 2047 maturities.

The deal is rated Aa2 by Moody’s, AAA by S&P and AA-plus by Fitch.

Siebert Cisneros Shank priced the Pennsylvania Turnpike Commission’s $259.86 million of turnpike subordinate revenue refunding bonds, third series of 2017 and motor license fund-enhanced turnpike subordinate special revenue refunding bonds, third series of 2017.

The $100.27 million of subordinate revenue refunding bonds were priced to yield from 2.73% with a 5% coupon in 2026 to 3.11% with a 5% coupon in 2031 and to yield from 3.62% with a 4% coupon in in 2036 to 3.67% with a 4% coupon in 2038.

The $159.59 million of motor license fund-enhanced turnpike subordinate special revenue refunding bonds were priced to yield from 2.69% with a 5% coupon in 2028 to 3.47% with a 4% coupon in 2038; a 2040 maturity was priced as 5s to yield 3.21%.

The subordinate revenue refunding bonds are rated A3 by Moody’s, A-minus by Fitch and A-plus by Kroll Bond Rating Agency while the motor license fund-enhanced turnpike subordinate special revenue refunding bonds are rated A2 by Moody’s and AA-minus by Fitch and Kroll.

Bond Buyer 30-day visible supply at $22.8B
The Bond Buyer's 30-day visible supply calendar increased 1.131 billion to $22.78 billion on Monday. The total is comprised of $5.14 billion of competitive sales and $17.64 billion of negotiated deals.

Data appearing in this article from Municipal Bond Information Services, including the 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.