Secondaries trading was soft on Tuesday, with focus shifting to primaries as a number of new issues along the credit spectrum were priced in, while Treasuries improved and stocks ended mixed.
The primary was driven by two big California issues, including the state’s competitive sale of tax-exempt and taxable general obligation bonds, the University of Miami’s big deal, and the Harris County Houston Sports Authority’s rebate and tender offer.
A larger slate is putting pressure on dealers to complete new issuance. Anders S. Persson, Nuveen’s chief investment officer for global fixed income, and Daniel J. Close, Nuveen’s municipal manager, said last week that the municipal market “struggling under the weight of large new issuances.”
The transaction price was set “very low” to stimulate investor interest, he said.
“But eventually supply overwhelmed the Street and some deals were canceled,” Persson and Close said.
The Ohio Water Development Authority and the California Community Choice Financing Authority both backed out of the deal last week, but the latter set a price on Friday. The issuer priced another large deal on Tuesday.
Some improvement in ratios and rising yields have brought buyers back.
Joshua Perry notes that while the short-term financial institutions to UST ratio was too high before the September Fed rate cut, suggesting that institutions are already pricing in rate cuts that haven’t materialized yet. The UST had expected a rate cut, but noted that it would not move until a rate cut was made. , a partner, portfolio manager and municipal credit analyst in Brown Advisory’s fixed income team.
Currently, the short-end ratio is “balanced,” he said.
Two-year bonds stood at 65% on Tuesday, three-year bonds at 64%, five-years at 65%, 10-years at 70% and 30-years at 86%, according to Refinitiv Municipal Market Data. . PM EST reading. ICE Data Services was 66% two years, 65% three years, 66% five years, 71% 10 years and 84% 30 years as of 3:30 p.m.
In the main market on Tuesday, RBC Capital Markets issued $1.153 billion in green and clean energy project income bonds, Series 2024D, to the California Community Choice Financing Authority (Aa1///). Prices were set (3.19% for September 2026, 5 for 3/). 3.30% in 2029, 3.30% on September 5, 2029, 3.64% on September 5, 2032, February 5, 2055, compulsory bid date is September 1, 2032 3.83%, callable date is June 2032 1st of the month.
Barclays has priced $864.95 million in bonds issued by the University of Miami for the Miami-Dade County Educational Facilities Authority (A2/A-//). The first tranche, $555,615,000 of Revenue and Revenue Refinancing Notes, Series 2024A, has 3.39% April 2025 5s, 2.97% 2029 5s, and 3.41% 2034 5s. , 5 seconds in 2039 was 3.70%, and 5 seconds in 2044. 4.04%, 5.25 seconds in 2048 is 4.19%, callable on April 1, 2035.
The second tranche, $309,335,000 of Revenue Refinancing Bonds, Series 2024B, includes 3.20% April 2030 5s, 3.54% 2034 5s, 3.83% 2039 5.25s; 5.25 seconds in 2044 was 4.17%, and 5.25 seconds in 2044 was 4.17%. 4.23% in 2045, billable on April 1, 2035.
Wells Fargo has awarded $455.48 million in Commonwealth Mortgage bonds to the Virginia Housing Development Authority (Aaa/AAA//).
For the first tranche, the $80 million non-AMT bond Series D, all bond prices remained at par: 3.25s in January 2026, 3.4s in January 2029, 3.4s in July 2029, 3.9 seconds in January 2034, 3.9 seconds in July 2034, 4.1 seconds in July 2039, 4.5 seconds in July 2045, 4.65 seconds in January 2050, 4.7 seconds in July 2055, 2033 Callable July 1st.
For the second tranche, $160 million taxable, Series E, all bond prices were at par: 4.543s in January 2026, 4.782s in January 2029, and 4.812s in July 2029. seconds, 5.177 seconds in January 2034, 5.227 seconds in January 2034, July 2034, 5.507 seconds in July 2039, 5.823 seconds in July 2044, 5.903 seconds in July 2049, July 2055 5.953 seconds, callable on July 1, 2033.
The third tranche, $215.48 million in non-AMT corporate bonds Series F, recorded a par value of 3.625 seconds in July 2055 with a mandatory bid date of April 1, 2026.
JPMorgan has placed Atlanta (Aa3/A+//) on a $390,725,000 water and wastewater subordinated lien sustainability revenue bond with a November 2029 5s of 2.89% and a 2034 5s 3.32%, 5 seconds in 2039 is 3.60%, 5 seconds in 2039 is 3.60%, 5 seconds in November 2029 is 3.60%, 4.10% in 2043, callable date is November 1, 2034.
Wells Fargo has priced $376,415,000 in guaranteed revenue repayment bonds for the Harris County-Houston Sports Authority (A1/AA//). The first tranche, $242,955,000 of senior lien notes, Series 2024A, has 3.28% November 2025 5s, 3.18% 2029 5s, 3.54% 2034 5s, and 2039 4s. 4.05%, and 4s in 2044 was 4.30%. % and 5 in 2047 is 4.34%, callable on November 15, 2034.
The second tranche, $133.46 million second lien notes, series 2024B, has 3.38% November 2025 5s, 3.28% 2029 5s, 3.68% 2034 5s, and 2039 5s. 3.95%, 5s in 2044 was 4.24. % and 5 in 2046 is 4.32%, callable on November 15, 2034
BofA Securities prices Pasco County, Florida School District (Aa3//AA/) $215 million sales tax revenue bond at 3.01% for five October 2025 issues and five for 2029. 2.92%, and 3.38% for 5 cases in 2034. 5 in 2039 is 3.63%, callable on October 1, 2034.
JPMorgan priced the Indiana Department of Housing and Community Development (Aaa//AA+/) single-family mortgage social revenue bond at $199,165,000.
The first tranche, $97,125,000 in non-AMT Series D-1 bonds, will be 3.3 seconds in July 2027, 3.45 seconds in January 2029, 3.5 seconds in July 2029, 3.95 seconds in January 2034; In July, it was 3.9 seconds. Can be called in 2034, 4.1 seconds in July 2039, 4.55 seconds in July 2044, 4.7 seconds in July 2049, 4.75 seconds in July 2054, and January 1, 2033.
The second tranche, $2.875 million of AMT Series D-2 bonds, had all bond prices at par, 3.8s July 2025, 3.85s July 2027, and non-call.
For the third tranche, $99,165,000 of taxable series D-3 bonds, all bond prices remained at par – 4.445s in January 2026, 4.558s in January 2029, and 4.558s in July 2029. 4.608 seconds, 5.228 seconds in January 2034, 5.278 seconds Seconds in July 2034, 5.518 seconds in July 2039, 5.874 seconds in July 2044, 5.944 seconds in July 2049 — 5.328% of 2054 7 Callable on January 1, 2033, except during the 6th second of the month.
Stifel priced $120.36 million ad valorem property tax first lien bonds, Series 2024A, for Brownsburg, Indiana 1999 School Building Corporation (/AA+//). 5 seconds in January 2026 is 3.21% and 5 seconds in January 2029 is 3.01%. %, 5 in July 2029 3.02%, 5 in January 2034 3.45%, 5 in July 2034 3.47%, 5 in July 2039 3.75%, 5 in July 2044 4.09 %, callable 7/ 15/2034.
In a competitive market, the State of California (Aa2/AA-/AA/) sold $471,995,000 of mixed purpose GO refinancing notes to JPMorgan. The breakdown was 3.875 in 2025, 3.40%, 2.75% in 2029, and 3.17 in 2034. %, non-call.
The state sold $324,965,000 of taxable miscellaneous purpose GO to Wells Fargo, with August 2029 4.5s of 4.34%, non-call.
California also sold $55,445,000 of taxable mixed-purpose GO refinancing bonds to Wells Fargo with a non-call August 2025 4.45% and 2031 5S 4.55%. It became.
Pender County, North Carolina (Aa2/AA//) has 2.86% March 2026 5 Bonds, 2.75% 2029 5 Bonds, 3.23% 2034 5 Bonds, and 3.23% 2034 5 Bonds. , 3.80% in 2039, 4.09% in 2044, 4.15% in 2045, billable on March 1, 2034.
Pinellas County, Florida School District sold 5 June 2025 3.25%, non-call tax pro forma statements worth $100 million to TD Securities.
Perry said there will be a large amount of issuance this week, but next week there will be little trading due to the election, reducing supply.
Additionally, market volatility and the volatility of its yields have made market participants more “cautious,” he said.
However, “oversized” reinvestment funds will be available on Nov. 1 and Dec. 1, Parson and Close said.
CreditSights said redemptions are expected to decline 12% in November compared to the previous month, but reinvestment demand will increase “slightly” at the start of the month as issuers return $14.3 billion in principal on Nov. 1. It is said that there is a possibility.
Investors will also receive $7 billion in interest payments due Nov. 1, the company said.
“Most (perhaps all) of that money will be kept until after the election,” the company said.
AAA scale
Refinitiv MMD size was reduced by 2-5 basis points to 2.85% (+2) for the one-year and 2.69% (+4) for the two-year. As of 3 p.m., the 5-year bond is 2.68% (+4), the 10-year bond is 3.01% (+4), and the 30-year bond is 3.87% (+5).
The ICE AAA yield curve has been lowered by 2-5 basis points to 2.96% (+2) in 2025 and 2.72% (+2) in 2026. The 5-year was 2.70% (+5) and the 10-year was 2.70% (+5). As of 3:30 p.m., it was 3.01% (+4) and the 30-year was 3.81% (+4).
The S&P Global Market Intelligence municipal curve has been lowered. The one-year yield was 2.90% (+3) in 2025 and 2.73% (+5) in 2026. The 5-year was 2.71% (+5) and the 10-year was 2.71% (+5). As of 3 p.m., the annual yield was 3.01% (+6) and the 30-year bond yield was 3.81% (+5).
Bloomberg’s BVAL was lowered by 2-4 basis points. In 2025 it was 2.85% (+2) and in 2026 it was 2.67% (+3). The 5-year was 2.71% (+3), the 10-year was 3.02% (+4)) and the 30-year was 3.83% (+4) as of 3:30 p.m.
National debt remained largely unchanged.
2 year UST yield is 4.126% (-2), 3 year is 4.094% (-1), 5 year is 4.110% (-1), 10 year is 4.279% (stable), 20 year at closing price Bonds were 4.626% (flat) and 30-year bonds were 4.526% (flat).
future primary
Washington (Aaa/AA+/AA+/) on Wednesday issued a $1.55 billion general obligation bond consisting of $886,245,000 in various purpose GO refinancing bonds, series R-25B, series 2025-2039. The price will be set in US dollars. and $664,155,000 in motor fuel taxes and vehicle-related fees. GO Repayment Bonds, Series R-25C, Series 2025-2039, 2042. BofA Securities.
The Pennsylvania Higher Education Facilities Authority (A3/A/A/) on Wednesday plans to price the Thomas Jefferson University fixed-rate income bonds at $1.17 billion, including 655 million tax-exempt Series 2024B-1 bonds. million dollars plus taxes of $285 million. Series 2024B-2 bonds and $168 million of taxable Series 2024C bonds are exempt. JP Morgan.
The New Orleans Aviation Commission (A2//A/) is scheduled to price $597.4 million in general airport revenue bonds on Wednesday. The Notes consist of $47,575,000 of non-AMT Refinancing Notes, Series 2024A, Series 2026-2045. $455,435,000 of AMT Refinancing Notes, Series 2024B, Series 2026-2045. $19,875,000 of non-AMT bonds, series 2024C01, term 2054l; $69,395,000 of AMT bonds, series 2024C-2, series 2029-2045, term 2049, 2051; and $5.12 million taxable, Series 2024C-3, Series 2026-2029. Bohua Securities.
Philadelphia (A1/A+/A+/) on Wednesday plans to price its Series 2024C water and wastewater revenue bonds at $558.37 million. Siebert Williams Shank.
The Nebraska Investment Finance Authority (/AAA//) on Wednesday plans to price $130.51 million in single-family home income bonds, including $96 million in social non-AMT Series G bonds and taxable Series H bonds. It is 35 million dollars. JP Morgan.
The Atlanta Urban Redevelopment Authority (Aa1//AAA/) on Wednesday plans to price $103,735,000 in surface transportation and infrastructure project revenue bonds, Series 2024B, Series 2025-2044. Ramirez.
competitiveness
The City and County of San Francisco (Aa2/AA+/AA+/) will sell its Multiple Capital Improvement Projects Certificate of Participation, Series 2024A, for $118,705,000 at 11:30 a.m. Thursday.
The Charleston County School District is scheduled to sell a $115,065,000 GO at 11 a.m. Thursday.
