Municipals were firmer to kick off December, as U.S. Treasuries were weaker and equities were mixed late in the session.
Muni yields were bumped one to four basis points, depending on the scale, while UST yields rose up to five basis points on the short end, as of 3 p.m.
The two-year municipal to UST ratio Monday was at 61%, the five-year at 63%, the 10-year at 66% and the 30-year at 82%, according to Refinitiv Municipal Market Data's 3 p.m. EST read. ICE Data Services had the two-year at 62%, the five-year at 63%, the 10-year at 66% and the 30-year at 81% at 3 p.m.
Munis ended November in the black with the asset class seeing gains of 1.73% for the month, pushing year-to-date returns to 2.55%.
This is the best return figure of 2024, surpassing the previous high of 1.53% from June, said Jason Wong, vice president of municipals at AmeriVet Securities.
Muni yields fell last week by an average of 12.3 basis points across the curve, with the greatest gains out long, Wong said.
"With October seeing negative returns, investors saw an opportunity to grab higher absolute yields this month in anticipation of the Fed's potential 25 basis point cut on Dec. 18," Wong said.
"We are in an interesting pocket of time going into December as investors are expected to see over $36 billion in principal payments, approximately $15 billion in interest payments, and about [$16.8] billion in visible supply," he said.
December should see positive returns, pushing overall returns for the year even higher as December historically has been "favorable to munis," Wong said.
Supply slowed considerably last week, contributing to
November's volume was at $24.7 billion, down 33% from 2023, as election-related uncertainty and fewer available pricing days kept volume low.
However, supply in 2024 will break issuance records.
Issuance year-to-date is at $474.755 billion, up 32.8% year-over-year, and only $10 billion shy of 2020's record $484.601 billion.
This will be helped by a
Other large deals include the Greater Orlando Aviation Authority with $805 million of AMT airport facilities revenue bonds, Connecticut with $769 million of special tax obligation bonds for transportation infrastructure purposes and Hawaii with $750 million of taxable GOs.
And to close out the year, a few more sizable deals are on the horizon.
The Dormitory Authority of the State of New York is set to price the week of Dec. 9 around $2.5 billion of new-money and refunding state sales tax revenue bonds.
The Chicago Transit Authority is set to price the week of Dec. 9 $600 million of sales tax receipts revenue bonds.
The Metropolitan Water Reclamation District of Greater Chicago is set to price Dec. 10 $500 million various GOs.
Primary to come:
The New Jersey Transportation Trust Fund Authority (A2/A-/A/A) is set to price Thursday $1.5 billion of transportation program bonds, 2024 Series CC, serials 2030-2044, terms 2049, 2055. Barclays.
The
Connecticut (Aa3/AA/AA-/AAA) is set to price Wednesday $768.78 million of transportation infrastructure purposes special tax obligation bonds, Series 2024 A-2. Goldman Sachs.
Hawaii (Aa2/AA+/AA/) is set to
The Sales Tax Securitization Corp., Illinois, is set to price Thursday $679.68 million of sales tax securitization refunding bonds, consisting of $142.09 million of refunding bonds, Series 2024A, (/AA-/AAA/AAA), serials 2029, 2031-2044; $404.22 million of second lien sales tax refunding bonds, Series 2024A (/AA-/AA-/AA+), serials 2029-2030, 2032-2041; and $133.37 million of taxable second lien sales tax securitization refunding bonds, Series 2024B, serials 2025, 2027-2029, 2039. RBC Capital Markets.
The New York City Housing Development Corp. is price Tuesday $550 million of 8 Spruce Street multi-family mortgage revenue bonds consisting $276.8 million of Series A taxables (Aaa///), serials 2031; $49.6 million of Series B taxables (Aa3///), serial 2031; $19.7 million of Series C taxables (A2///), serial; 2031; $25.5 million of Series D tax-exempts (Baa1///), serials 2031; $52.5 million of Series E tax-exempts (Baa3///), serials 2031; and $125.9 million of non-rated Series F bonds, serials 2031. BofA Securities.
The Mobile County Industrial Development Authority, Alabama, (Baa3/BBB-//) is set to price $480 million of AM/NS Calvert LLC Project solid waste disposal revenue bonds, Series 2024B. BofA Securities.
Austin (/AAA/AA+/) is set to price Wednesday $434.965 million in three series, consisting of $301.525 million of public improvement and refunding bonds, Series 1; $103.67 million of Series 2024 certificates of participation; and $29.77 million of Series 3 public property finance contractual obligations. Piper Sandler.
The Parish of St. John the Baptist, Louisiana, (A2/A-/A/) is set to price Thursday $400 million of Marathon Oil Corp. Project non-AMT revenue refunding bonds, Series 2017, Subseries 2017C, remarketing, serial 2037. Barclays.
The New York City Housing Development Corp. (Aa2/AA+//) is set to price Thursday $397.725 million of sustainable development multi-family housing revenue bonds, consisting of $269.53 million of Series F-1 and $128.195 million of Series F2. Jefferies.
The St. Vrain Valley School District RE-1J, Colorado, (Aa1/AA+//) is set to price Wednesday $346.55 million of general obligation bonds, insured by Colorado State Intercept Program, serials 2025-2032, 2034-2039. Stifel, Nicolaus & Co.
The Cherry Creek School District No. 5, Colorado, (Aa1/AA+//) is set to price Tuesday $316.67 million of general obligation bonds, insured by Colorado State Intercept Program, serials 2025-2026, 2032-2044. RBC Capital Markets.
The Westfield Washington Multi-School Building Corp., Indiana, (/AA+//) is set to price Tuesday $303.815 million of Indiana State Aid Intercept Program-insured ad valorem property tax first mortgage bonds, consisting of $188.61 million of Series 2024A, serials 2027-2044, and $115.205 million Series 2024B, serials 2027-2044. Stifel, Nicolaus & Co.
The New Jersey Housing and Mortgage Finance Agency (/AA-//) is set to price Tuesday $272.875 million of non-AMT social multi-family revenue bonds, consisting of $39.225 million of Series 2024A, serials 2025-2036, terms 2040, 2045, 2050, 2055, 2060; $73.65 million of Series 2024B, serials 2027, 2029; $73.425 million of Series 2023E-1, serials 2025-2035, terms 2040, 2045, 2050, 2055, 2060; and $86.575 million of Series 2023E-2, serials 2026-2027. Barclays.
The Cumberland County Industrial Development Facilities and Pollution Control Financing Authority (Aaa///) is set to price Thursday $250 million of Project Aero solid waste disposal revenue bonds, serial 2027. Oppenheimer.
The Wisconsin Health and Educational Facilities Authority (nonrated) is set to price Wednesday $239.655 million of Chiara Housing and Services, Inc. Project senior living revenue bonds, terms 2035, 2045, 2055, 2060. D.A. Davidson.
The Colorado Bridge and Tunnel Enterprise (Aa1/AA+//) is set to price Thursday $238.975 million of senior revenue refunding bonds, Series 2024B, serials 2028-2049. Wells Fargo.
The Illinois Housing Development Authority (Aaa///) is set to price Tuesday $200 million of non-AMT social revenue bonds, 2024 Series I, serials 2029, terms 2044, 2050, 2055. Wells Fargo.
The Maryland Community Development Administration (Aaa///) is set to price Tuesday $178 million of Villages at Marley Station sustainability multifamily development revenue bonds, consisting of $95.22 million of Series D-1 Fannie Mae MBS-secured bonds, serials 2029-2036, terms 2039, 2044, and $82.78 million of Series D-2 cash-collateralized bonds, term 2029. Jefferies.
The Karegnondi Water Authority, Michigan, (/AA//) is set to price $166.135 million of Karegnondi Water Pipeline water system refunding bonds, insured by BAM. J.P. Morgan.
The Capital Projects Finance Authority, Florida, is set to price Thursday $144.4 million of PRG - Unionwest Properties LLC Project student housing revenue bonds, consisting of $108.385 million of tax-exempt senior bonds, Series 2024A-1 (Ba1///), serials 2033-2044, terms 2049, 2054, 2058; $7.455 million of taxable senior bonds, Series 2024A-2 (Ba1///), serials 2026-2033; and $28.56 million of tax-exempt subordinate bonds, Series 2024B (nonrated), term 2062. BofA Securities.
Chicago (/BBB+/A-/A) is set to price Thursday $126.595 million of general obligation refunding bonds, Series 2024B, serials 2025, 2029, 2031-2035. RBC Capital Markets.
The FAU Finance Corp., Florida, (A1//A+/) is set to price Thursday $117.75 million of capital improvement revenue bonds, serials 2027-2044, terms 2049, 2054. BofA Securities.
The Adams County General Authority, Pennsylvania, (//BBB+/) is set to price Thursday $110.815 million of The Brethren Home Community Project revenue bonds, consisting of $91.36 million of Series 2024A, $7.285 million of Series 2024B-1 and $12.16 million of Series 2024B-2. HJ Sims & Co.
The Illinois Housing Development Authority (Aaa///) is set to price $100 million of taxable revenue social bonds, Series J, serials 2025-2036, terms 2039, 2041. Ramirez.
Competitive:
Anchorage (/A//) is set to sell $181.86 million of AMT port revenue bonds, Series 2024A, at 11 a.m. eastern Tuesday.
