After being flooded on Wednesday with deals from California, Maryland, Arizona State University, University of Virginia and Indiana University, the market is digesting while the feast continues.
Primary Market
Bank of America Merrill Lynch is expected on Thursday to price the largest remaining deal for the week - the Los Angeles Department of Water and Power, Calif.'s $495 million power system revenue bonds.
Piper Jaffray is expected to price $164.670 million of joint general obligation and refunding bonds for Westlinn-Wilsonville School District No. 3 in Ore.
Raymond James is scheduled to price $155.410 million of unlimited tax refunding bonds for Prosper Independent School District in Texas. The deal is scheduled to mature serially from 2016 to 2043 and has underlying rating of A1 from Moody's Investors Service and A from Standard and Poor's.
To recap some of the action from Wednesday, Bank of America Merrill Lynch and Morgan Stanley priced and then re-priced California's $1.9 billion general obligation bonds for institutions. The $931.61 million general obligation new money part is priced to yield from 0.17% with a 4% coupon in 2016 to 3.68% with a 4% coupon and 3.27% as 5s in a split maturity in 2045.
The $998.005 million refunding part of the deal is priced to yield from 0.17% in a split maturity in 2016, with 2% and 3% coupons, to 2.90% as 5s in 2030. The deal is rated Aa3 by Moody's Investors Service and A-plus by both Standard and Poor's and Fitch Ratings.
Maryland auctioned two issues totaling $822.7 million on Wednesday.
Bank of America Merrill Lynch won the $518 million of tax-exempt First Series A State and Local Facilities Loan of 2015 GOs with a true interest cost of 2.646%. It is priced to yield from 0.90% in 2018 with a 5% coupon to 2.89% with a 4% coupon in 2029. The 2030 maturity is priced at 98.50, with a 3% coupon.
Citi won the $364.695 million of tax exempt refunding First Series B State and Local Facilities Loan of 2015 GO with a true interest cost of 2.1433%.it is priced to yield from 1.40% with a 4% coupon in 2020 to 2.40% as 4s in 2026.
Both issues are rated triple-A by Moody's, S&P and Fitch.
Secondary Market
On Thursday, Treasury prices were mostly lower, as the yield on the two-year Treasury note was flat from 0.66% on Wednesday, while the 10-year yield rose to 2.13% from 2.11% and the 30-year yield rose to 2.73% from 2.72%.
The yield on the 10-year benchmark muni general obligation on Wednesday was unchanged from Tuesday's 2.08%, while the yield on the 30-year GO decreased by one basis point to 2.92% from 2.93%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 98.2% on Wednesday versus 97.9% on Tuesday, while the 30-year muni to Treasury ratio stood at 107.4% compared to 107.9%.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 41,003 trades on Wednesday on volume of $9.307 billion.
Most active on Wednesday, based on the number of trades, was the Missouri State Development Finance Board (Branson Landing) infrastructure facilities revenue bond 4s of 2034, which traded 161 times at an average price of 99.947, with an average yield of 3.976%.
