Municipals were little changed in secondary trading Tuesday as a large new-issue calendar took focus in the primary, led by a $1.5 billion retail order from the New York City Transitional Finance Authority. U.S. Treasuries were firmer across the curve and equities were up near the close.
The two-year muni-to-Treasury ratio Tuesday was at 64%, the three-year at 63%, the five-year at 61%, the 10-year at 61% 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 63%, the three-year at 63%, the five-year at 61%, the 10-year at 61% and the 30-year at 81% at 3:30 p.m.
The muni market remains "well bid," mostly because of $100 billion of reinvestment money being put to work — $25 billion on May 1, $36 billion on June 1 and $37 billion on July 1, said Anders S. Persson, Nuveen's chief investment officer for global fixed income, and Daniel J. Close, Nuveen's head of municipals.
High-grade munis continue to trade "rich" versus taxables, though demand for munis remains, they said.
"Issuers are taking advantage of the reinvestment money with a second consecutive week with new issuance of more than $10 billion," with the new supply "priced to sell and ... well received," they said.
This week's issuance is above the 2024's year-to-date weekly average of $7.6 billion, said Chris Brigati, senior vice president and director of strategic planning and fixed income research at SWBC.
"As we progress towards the typically intense summer demand period, the building calendar should be expected to continue to be well absorbed," Brigati said.
In the primary market Tuesday, RBC Capital Markets held a one-day retail order for the New York City Transitional Finance Authority's (Aa1/AAA/AAA/) $1.5 billion of tax-exempt future tax-secured subordinate bonds, Fiscal 2024 Series G, Subseries G-1, with 5s of 5/2026 at 3.18%, 5s of 2029 at 2.92%, 5s of 2036 at 3.10%, 5s of 2039 at 3.39%, 5s of 2044 at 3.79%, 5.25s of 2049 at 3.96% and 4.125s of 2052 at 4.26%, callable 5/1/2034.
Raymond James held a one-day retail order for the Dormitory Authority of the State of New York's $956.71 million of School Districts Revenue Bond Financing Program revenue bonds. The first tranche, $785.765 million of Assured Guaranty-insured Series 2024A bonds (Aa3/AA/AA-/), saw 5s of 10/2025 at 3.30%, 5s of 2029 at 3.02%, 5s of 2034 at 3.07%, 5s of 2039 at 3.49%, 5s of 2044 at 3.87%, 4.125s of 2048 at 4.25% and 4.25s of 10/2052, callable 10/1/2032.
The second tranche, $45.585 million of Assured Guaranty-insured Series 2024B bonds (Aa3/AA/AA-/), saw 5s of 10/2025 at 3.30%, 5s of 2029 at 3.02%, 5s of 2034 at 3.07% and 5s of 2039 at 3.49%, callable 10/1/2032.
The third tranche, $59.29 million of Series 2024C (Aa2//AA-/), saw 5s of 10/2025 at 3.30%, 5s of 2029 at 3.02%, 5s of 2034 at 3.07% and 5s of 2039 at 3.49%, callable 10/1/2032.
The fourth tranche, $66.07 million of Series 2024D (/AA/AA-/), saw 5s of 10/2025 at 3.30%, 5s of 2029 at 3.02%, 5s of 2034 at 3.07% and 5s of 2039 at 3.49%, callable 10/1/2032.
Goldman Sachs priced and repriced for San Francisco Airport Commission (A1//A+/) $897.54 million of San Francisco International Airport second series revenue refunding bonds, yields bumped the most out long from the preliminary pricing. The first tranche, $756.575 million of Series 2024A, saw 5s of 5/2029 at 3.48% (-6), 5s of 2034 at 3.59% (-2), 5s of 2039 at 3.89% (-7), 5.25s of 2044 at 4.12% (-10) and 5.25s of 2049 at 4.24% (-16), callable 5/1/2034.
The second tranche, $122.425 million of Series 2024B, saw 5s of 2040 at 3.33% (-5), 5s of 2044 at 3.69% (-6) and 5s of 2049 at 3.87% (-12), callable 5/1/2034.
The third tranche, $18.54 million of taxables, Series 2024C, saw 5.35s of 2025 price at par.
Morgan Stanley priced and repriced for New Jersey Turnpike Authority $685.315 million of forward-delivery turnpike revenue bonds, Series 2024 C, with small bumps from the preliminary pricing: 5s of 1/2042 at 3.85% (unch), 5s of 2044 at 3.97% (-3) and 5s of 2045 at 4.03% (-4), callable 1/1/2034. Forward delivery date of 10/3/2024.
Goldman Sachs priced and repriced for Miami-Dade County, Florida, (Aa3/AA/AA-/) $534.44 million of water and sewer system revenue bonds, with yields bumped four to eight basis points from the preliminary pricing. The first tranche, $322.49 million of new-issue bonds, Series 2024A, saw 5s of 10/2048 at 3.98% (-7), 5s of 2049 at 4.04% (-5) and 5.25s of 2054 at 4.07% (-8), callable 4/1/2034.
The second tranche, $214.255 million of refunding bonds, Series 2024B, saw 5s of 10/2027 at 3.05% (-5), 5s of 2029 at 2.90% (-6), 5s of 2034 at 3% (-4), 5s of 2039 at 3.35% (-8) and 5s of 2042 at 3.64% (-6), callable 4/1/2034.
Jefferies priced for the Tarrant Regional Water District, Texas, (/AAA/AA+/) $289.525 million of water revenue refunding and improvement bonds, Series 2024, with 5s of 3/2025 at 3.31%, 5s of 2029 at 2.87%, 5s of 2034 at 3%, 5s of 2039 at 3.31%, 5s of 2044 at 3.72%, 4s of 2049 at 4.18% and 4s of 2054 at 4.25%, callable 3/1/2034.
Morgan Stanley priced for the Oklahoma City Water Utilities Trust (Aaa/AAA//) $262.75 million of non-AMT utility system revenue refunding and improvement bonds, Series 2024, with 5s of 7/2026 at 3.05%, 5s of 2029 at 2.79%, 5s of 2034 at 2.90%, 5s of 2039 at 3.19%, 5s of 2044 at 3.58%, 5s of 2049 at 3.84%, 5s of 2054 at 3.93% and 5.25s of 2059 at 3.98%, callable 7/1/2034.
Raymond James priced for the Ector County Independent School District, Texas, (Aaa/AAA//) $179.63 million of PSF-insured unlimited tax school building bonds, Series 2024-A, with 5s of 8/2025 at 3.28%, 5s of 2029 at 2.94%, 5s of 2034 at 3.03%, 5s of 2039 at 3.35%, 5s of 2044 at 3.73% and 4s of 2045 at 4.10%, callable 8/15/2033.
BofA Securities priced for the Board of Trustees of the University of Illinois (Aa2/AA-//) $164.88 million of University of Illinois auxiliary facilities system revenue bonds. The first tranche, $142.24 million of refunding bonds, Series 2024A, saw 5s of 4/2025 at 3.45%, 5s of 2029 at 2.94%, 5s of 2034 at 2.97%, 5s of 2039 at 3.42% and 5.25s of 2044 at 3.78%, callable 4/1/2034.
The second tranche, $22.64 million of taxables, Series 2024B, saw all bonds price at par: 5.35s of 4/2025, 4.974s of 2029, 5.19s of 2034, 5.56s of 2039 and 5.61s of 2044, callable 4/1/2034.
Stifel Nicolaus priced for Utica Community Schools, Michigan, (/AA//) $117.365 million of 2024 school building and site and refunding bonds, with 5s of 5/2025 at 3.39%, 5s of 2029 at 2.90%, 5s of 2034 at 3.01% and 5s of 2039 at 3.37%, callable 5/1/2034.
AAA scales
Refinitiv MMD's scale was little changed: The one-year was at 3.23% (unch) and 3.07% (unch) in two years. The five-year was at 2.74% (+2), the 10-year at 2.73% (+2) and the 30-year at 3.77% (unch) at 3 p.m.
The ICE AAA yield curve was little changed: 3.25% (unch) in 2025 and 3.09% (unch) in 2026. The five-year was at 2.77% (+1), the 10-year was at 2.73% (unch) and the 30-year was at 3.74% (-1) at 3:30 p.m.
The S&P Global Market Intelligence municipal curve was cut up to two basis points: The one-year was at 3.27% (+2) in 2025 and 3.08% (+2) in 2026. The five-year was at 2.73% (+2), the 10-year was at 2.71% (+1) and the 30-year yield was at 3.76% (unch), according to a 3 p.m. read.
Bloomberg BVAL was little changed: 3.31% (unch) in 2025 and 3.11% (unch) in 2026. The five-year at 2.67% (unch), the 10-year at 2.64% (unch) and the 30-year at 3.79% (unch) at 3:30 p.m.
Treasuries were slightly firmer across the curve.
The two-year UST was yielding 4.823% (-3), the three-year was at 4.621% (-4), the five-year at 4.465% (-3), the 10-year at 4.453% (-3), the 20-year at 4.701% (-2) and the 30-year at 4.60% (-2) near the close.
Primary to come
The Los Angeles Department of Water and Power (Aa2/AA+//AA+/) is set to price Thursday $448.485 million of water system revenue bonds, 2024 Series B, serials 2024-2044. TD Securities.
The University of Texas System is set to price next week $425 million of Permanent University Fund bonds, Series 2024B. BofA Securities.
The Adventist Health System/West (/BBB+/BBB+/) is set to price Thursday $390.76 million of taxable corporate CUSIPs, Series 2024, serial 2034. RBC Capital Markets.
The Port of Greater Cincinnati Development Authority is set to price Thursday $292.195 million of tax-exempt Duke 1 Energy Convention Center Project-Transient Occupancy Tax development revenue and refunding bonds, consisting of $56.685 million of senior development revenue and refunding bonds, Series 2024A (Aa3/AA//), serials 2024-2043, terms 2048, 2053, 2058, 2063; $192.855 million of first subordinate development revenue and refunding bonds, Series 2024B (A2/A-//), serials 2025-2043, terms 2048, 2053, 2058, 2063; and $42.655 million of second subordinate development revenue bonds, Series 2024C (A3/BBB//), serials 2029-2043, terms 2048, 2053, 2058, 2063. BofA Securities.
The Greenwood Independent School District, Texas, (/AAA/AAA/) is set to price Thursday $256.33 million of PSF-insured unlimited tax school building bonds, Series 2024, serials 2025-2054. Jefferies.
The Colorado Housing and Finance Authority (Aaa/AAA//) is set to price Wednesday $145.51 million of taxable Class I single-family mortgage bonds, 2024 Series C-1, serials 2026-2034, terms 2039, 2044, 2054. RBC Capital Markets.
Georgetown, Texas, (/AA//) is set to price Wednesday $125.89 million of BAM-insured utility system revenue bonds, Series 2024, serials 2025-2044, terms 2049, 2054. BOK Financial Securities.
Alaska (Aa3/AA//AA/) is set to price Thursday $110.5 million of GO refunding bonds, Series 2024A. Goldman Sachs.
Competitive
The New York City Transitional Finance Authority is set to sell $158.59 million of taxable future tax-secured subordinate bonds, Fiscal 2024 Subseries G-2, at 10:45 a.m. Wednesday, and $141.41 million of taxable future tax-secured subordinate bonds, Fiscal 2024 Subseries G-3, at 11:15 a.m. Wednesday.
Virginia Beach, Virginia, is set to sell $146.084 million of GO public improvement bonds, Series 2024A, at 10 a.m. Wednesday; $118 million of GO public improvement bonds, Series 2024B, at 10:30 a.m. Wednesday; and $39.435 million of GO public improvement refunding bonds, Series 2024C, at 11 a.m. Wednesday.
The Virginia Beach Development Authority, Virginia, is set to sell $34.005 million of public facility revenue bonds, Series 2024A, at 10 a.m. Thursday; $27.31 million of public facility refunding revenue bonds, Series 2024B, at 10:30 a.m. Thursday; and $130.655 million of taxable public facility revenue bonds at 11 a.m. Thursday.
