The Pennsylvania Higher Educational Facilities Authority and the state of Wisconsin are coming to market on Tuesday as municipal bond traders eye tax reform developments in Washington.
U.S. Treasuries were flat on Tuesday. The yield on the two-year Treasury held at 1.74%, the 10-year Treasury yield remained 2.32% and the yield on the 30-year Treasury was steady at 2.77%.
Top-rated municipals ended weaker on Monday. The yield on the 10-year benchmark muni general obligation rose four basis points to 2.12% from 2.08% on Friday, while the 30-year GO yield gained three basis points to 2.79% from 2.76%, according to the final read of Municipal Market Data’s triple-A scale.
On Monday, the 10-year muni-to-Treasury ratio was calculated at 91.1% compared with 89.0% on Friday, while the 30-year muni-to-Treasury ratio stood at 101.0% versus 100.0%, according to MMD.
MBIS 10-year muni at 2.383%, 30-year at 2.883%
The MBIS municipal non-callable 5% GO benchmark scale was weaker in early trading.
The 10-year muni benchmark yield rose to 2.383% on Tuesday from the final read of 2.380% on Monday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The MBIS 30-year benchmark muni yield increased to 2.883% from 2.877% on Monday.
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.
Bank of America Merrill Lynch is set to price the Pennsylvania Higher Educational Facilities Authority’s $400 million of Series 2017A health system revenue bonds for the University of Pennsylvania Health System.
The deal is rated Aa3 by Moody’s Investors Service and AA-minus by S&P Global Ratings.
BAML is also expected to price the Trustees of the University of Pennsylvania’s $200 million of taxable health system bonds for the Pennsylvania Health System on Tuesday.
RBC Capital Markets is set to price Wisconsin’s $369.48 million of Series 2017 2 transportation revenue refunding bonds on Tuesday.
The advance refunding deal is rated Aa2 by Moody’s and AA-plus by S&P and Fitch and AAA by Kroll Bond Rating Agency.
Since 2007, the Badger State has issued over $20 billion of bonds. Prior to this year, the most issuance occurred in 2009 when Wisconsin sold $2.39 billion of bonds. The state issued the least amount of debt in 2007 when it sold $1.14 billion.
RBC is set to price for retail on Tuesday the New York State Environmental Facilities Corp.’s $323.55 million of Series 2017E state clean water and drinking water revolving funds revenue bonds for New York City Municipal Water Finance Authority projects.
The subordinated SRF bonds will be priced for institutions on Wednesday and are rated triple-A by Moody’s, S&P and Fitch.
Barclays Capital is set to price the Board of Regents of the University of Texas System’s $253.48 million of Series 2017C revenue financing system refunding bonds on Tuesday. The deal is rated Aaa by Moody’s.
Citigroup is expected to price Houston’s $135 million of airport system special facilities revenue bonds on Tuesday. The deal is rated BB-minus by S&P.
Hilltop Securities is expected to price Monrovia, Calif.’s $115.31 million of Series 2017 taxable pension obligation bonds.
Ziegler is expected to price Carson City, Nev.’s $104.98 million of Series 2017 hospital revenue and refunding bonds for the Carson Tahoe Regional Healthcare project. The deal is rated BBB-plus by S&P and Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $1.68 billion to $18.50 billion on Tuesday. The total is comprised of $6.34 billion of competitive sales and $12.16 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.