Investors will get a chance to bid on the week's second largest issue on Thursday, the $500 million Metropolitan Transportation Authority deal. Thanks to its frequency in the market, spreads are expected to come in wider than other deals, perhaps providing the market with some much needed yield.
Primary
- RBC Capital Markets Thursday will price $500 million of Metropolitan Transportation Authority of New York revenue bonds. Rated A2 by Moody's Investors Service, the deal is expected to pick up moderate interest from investors searching for yield and is expected to trigger New York issuer trading in secondary markets, traders agreed.
- The Greater Richmond Convention Center Authority will also tap the negotiated markets on Thursday, with Raymond James pricing a $113 million hotel tax revenue refunding deal. The deal is rated A1 by Moody's and A-plus by Standard & Poor's.
Secondary
Thursday morning trading sessions were light, with just one security collecting over $15 million in trades as of 10 a.m., according to Municipal Securities Rulemaking Board's disclosure website, EMMA. New York City Transitional Finance Authority future tax secured subordinate bonds fetched a little over $19 million in secondary trades Thursday morning, as yields on the 5s of 2015 edged down to 0.165% from 0.17%, according to EMMA.
Scales
Scale information for Thursday morning was not available at the time of publication.
Treasury
Treasury yields were sluggish on Thursday morning, marginally changed from Wednesday's market close. Yields on the two-year fell one basis point to 0.40% from 0.41%, while the 10- and 30-year each edged up one basis point to 2.26% and 3.03%, respectively.
