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
The MBIS benchmark index is updated hourly on the
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
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.