Primary volume is tapering off from the past two weeks, but Wednesday and Thursday will bring large, ultra high-grade paper that promises to push municipal scales into an even more dramatic rally. Below, the municipal highlights of the day.
Primary
- The Orange County Sanitation District deal will lead the competitive calendar on Wednesday with a $123.1 million revenue refunding certificates anticipation note. The bonds have a single maturity in 2016 rated triple-A by Standard & Poor's and Fitch Ratings. The bonds are slated for sale at 11:00 a.m.
In the negotiated markets, Wells Fargo will price a $118.85 million Maine Municipal Bond Bank deal on Wednesday. The issuance will come in two tranches, Series 2014B and Series 2014C refunding bonds, and are rated Aa2 by Moody's Investors Service and AA-plus by S&P.
Information provided by TM3 and The Bond Buyer.
Secondary
- In anticipation of the Orange County deal, two California credits emerge as the morning's top traders. The A-plus Irvine Unified School District Community Facilities District picked up $23 million in trades as of 9:40 a.m. on Wednesday. The bonds are 0.04% adjustable rate special tax bonds issued in 2012. The California Municipal Finance Authority was also a heavy morning trader with $14 million exchanged as of 9:40 a.m. Yields stayed flat at 0.3% for the solid waste refunding revenue bonds 0.3s of 2021.
Scales
The Municipal Market Data's triple-A 5% curve strengthen in morning trading sessions on Wednesday in the long end. Yields on bonds maturing between 2023 through 2044 fell as much as three basis points while the front end of the curve held steady.
Treasury Market
Treasury strengthened in overnight and morning trading sessions on Wednesday with yields falling across the curve. Yields on the two-year fell five basis points to 0.53% compared to Tuesday's 0.58% market close. The 10-year dove nine basis points to 2.43% while the 30-year dropped six basis points to 3.151% compared to Wednesday's market close.
