Municipal bonds finished unchanged on Monday as a big New York City deal was offered to retail buyers.

Traders are gearing up for this week’s $11.8 billion calendar, which is broken down into $7.74 billion of negotiated deals and $4.04 billion of competitive sales.

Primary market
Action kicked off Monday as Loop Capital Markets priced the New York City Transitional Finance Authority’s $850 million of tax-exempt Fiscal 2017 Series F Subseries F-1 future tax secured subordinate bonds for retail investors.

A two-day retail order period is scheduled for the bonds, which will be priced for institutions on Wednesday. The TFA will also competitive sell $250 million of taxable bonds in two separate sales on Wednesday.

The tax-exempts were priced for retail to yield from 1% with a 3% coupon in 2019 to approximately 3.317% in 2038; a 2043 maturity was priced as 5s to yield 2.96% and a 2044 maturity was priced as 4s to yield 3.27%. No retail orders were taken in the 2032-2033, 2039 or 2042 maturities.

The issue is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.

The action continues Tuesday when the state of Georgia plans to sell $1.4 billion of general obligation bonds in four separate competitive offerings.

The deals include $430.53 million of Series 2017A Tranche 2 GOs, $358.11 million of Series 2017A Tranche 1 GOs, $352.45 million of Series 2017C refunding GOs and $273.45 million of Series 2017B taxable GOs.

All four deals are rated triple-A by Moody’s, S&P and Fitch.

Additionally, the state of Massachusetts is competitively selling almost $785 million of GOs in three separate offerings.

The sales consist of $400 million of consolidated loan of 2017 Series D GOs, $284.85 million of Series 2017D GO refunding bonds and $100 million of consolidated loan of 2017 Series C GOs.

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

In the negotiated sector on Tuesday, Loop is set to price the city of Chicago’s $825 million of general airport senior lien revenue and revenue refunding bonds for the Chicago O’Hare International Airport.

The deal is rated A by S&P and Fitch.

Citigroup is expected to sell the Alabama Federal Aid Highway Finance Authority’s $551 million of Series 2017A special obligation revenue bonds and Series 2017B special obligation revenue refunding bonds on Tuesday.

The deal is rated Aa1 by Moody’s and AAA by S&P.

NYC Water to sell $164M Bonds next week
The New York City Municipal Water Finance Authority on Monday said it plans to competitively sell about $164 million of second general resolution fixed-rate tax-exempt bonds on June 27.

Prior week's actively traded issues
Revenue bonds comprised 53.63% of new issuance in the week ended June 16, down from 53.96% in the previous week, according to Markit. General obligation bonds comprised 40.57% of total issuance, up from 40.26%, while taxable bonds made up 5.80%, up from 5.78%.

Some of the most actively traded bonds by type were from New York, California and Illinois issuers.

In the GO bond sector, the New York City zeros of 2038 were traded 21 times. In the revenue bond sector, the Riverside County, Calif., 2s of 2018 were traded 51 times. And in the taxable bond sector, the Illinois 5.1s of 2033 were traded 17 times.

Previous week's top underwriters
The top negotiated and competitive underwriters of last week included Bank of America Merrill Lynch, Morgan Stanley, Citigroup, JPMorgan Securities, and RBC Capital Markets, according to Thomson Reuters data.

In the week of June 11 to June 17, BAML underwrote $1.16 billion, Morgan Stanley $767 million, Citi $703.5 million, JPMorgan $573.6 million, and RBC $547.7 million.

Secondary market
The yield on the 10-year benchmark muni general obligation was steady from 1.86% on Friday, while the 30-year GO yield was flat from 2.70%, according to the final read of Municipal Market Data's triple-A scale.

Treasuries were weaker on Monday. The yield on the two-year Treasury rose to 1.36% from 1.32% on Friday, the 10-year Treasury yield gained to 2.19% from 2.15% and the yield on the 30-year Treasury bond increased to 2.79% from 2.78%.

The 10-year muni to Treasury ratio was calculated at 85.0% on Monday, compared with 86.3% on Friday, while the 30-year muni to Treasury ratio stood at 96.8% versus 97.1%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 33,717 trades on Friday on volume of $8.67 billion.

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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.