Munis steady amid influx of supply

Munis were little changed Tuesday in the belly and long-end of the curve, as U.S. Treasury yields fell and equities were mixed toward the close.

The muni market is "soaring" as supply continues to slightly exceed last year's record pace of issuance, said Matt Fabian, president of Municipal Market Analytics.

Volume was robust last week, with a nearly $20 billion new-issue calendar, and while supply was expected to dip to $13 billion this week, it will end up higher thanks to four sizable prepay energy deals that came off the day-to-day calendar and priced on Monday and Tuesday.

"Last week's issuance total matched almost exactly the same week's total last year, with near-term forecasts similar and [year-to-date] issuance totals nearly on top of one another," the MMA reported.

If nominals continue to stay high and USTs withstand the "drama," high levels of muni production like this are expected to continue, Fabian said.

New-issue market
In the primary market Tuesday, Goldman Sachs (GS) priced for Energy Southeast (Aa3///) $719.73 million of energy supply revenue bonds, 2026 Series B, with 5s of 11/2029 at 3.68%, 5s of 2031 at 3.87% and 5s of 2033 at 4.05%, callable 8/2033.

BofA Securities priced for Los Angeles County $700 million of 2026-27 tax and revenue anticipation bonds, Series A, with 5s of 6/2027 at 2.38%, noncall.

The Advocate Health Nonprofit Credit Group priced through the North Carolina Medical Care Commission (Aa2/AA/AA/) $459.115 million of healthcare facilities revenue bonds. The first tranche, $330.425 million of Series 2026A-1 bonds, saw 5s of 8/2035 at 3.28% and 5s of 2038 at 3.56%, callable 5/2035.

The second tranche, $27.33 million refunding Series 2026A-2 bonds, saw 5s of 12/2039 at 3.66%, 5s of 2041 at 3.73% and 5s of 2045 at 4.10%, callable 12/2036.

The third tranche, $45.72 million of refunding Series 2026A-3 bonds, saw 5s of 12/2027 at 2.53%, 5s of 2031 at 2.93% and 5s of 2033 at 3.11%, noncall.

The fourth tranche, $55.64 million of Series 2026A-4 bonds, saw 5s of 6/2035 at 3.21%, 5s of 2036 at 3.28%, 5s of 2041 at 3.73%, 5s of 2047 at 4.31% and 5s of 2048 at 4.35%, callable 6/2036.

The credit group priced through the Illinois Finance Authority (Aa2/AA/AA/) $183.865 million of revenue bonds, Series 2026B, with 5s of 8/2031 at 3.04%, callable 5/2031.

In the competitive market, Connecticut (Aa2/AA/AA/AAA/) sold $443.685 million of special tax obligation refunding bonds, transportation infrastructure purposes, to Barclays (BCS), with 5s of 7/2027 at 2.35%, 5s of 2031 at 2.69% and 5s of 2036 at 3.08%, noncall.

Orange County, Florida, (Aa2//AA/) sold $297.795 million of tourist development tax refunding revenue bonds, Series 2026B, to Jefferies, with 5s of 10/2026 at 2.50%, 5s of 2031 at 2.78%, and 5s of 2036 at 3.20%, noncall.

The county also sold $280.52 million of tourist development tax revenue bonds, Series 2026A, to Wells Fargo (WFC), with 5s of 10/2037 at 3.30%, 5s of 2041 at 3.59%, 4s of 2046 at 4.073%, 4.375s of 2051 at 4.408% and 4.5s of 2056 at 4.561%, callable 10/2036.