Municipal bond traders await some of the biggest deals of the week on Wednesday as the bulk of the supply calendar gets set to hit the market.
Secondary Market
U.S. Treasuries were weaker on Wednesday morning. The yield on the two-year rose to 0.87% from 0.85% on Tuesday, the 10-year Treasury yield was higher at 1.78% from 1.76% and the yield on the 30-year Treasury bond increased to 2.52% from 2.50%.
Top-quality municipal bonds finished unchanged on Tuesday. The yield on the 10-year benchmark muni general obligation on Tuesday was flat from 1.72% on Monday, while the yield on the 30-year was steady at 2.54%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 97.9% compared to 99.1% on Monday, while the 30-year muni to Treasury ratio stood at 101.6% versus 102.0%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,741 trades on Tuesday on volume of $10.378 billion.
Primary Market
Barclays Capital is slated to price the California Health Facilities Financing Authority's $675 million of revenue and refunding bonds for the Cedar-Sinai Medical Center on Wednesday. The deal is rated Aa3 by Moody's Investors Service and AA-minus by Fitch Ratings.
Citigroup is set to price the Grand Dam Authority, Okla.'s $459 million of Series 2016A revenue refunding bonds and Series 2016B taxable revenue refunding bonds. The deal is rated A1 by Moody's, AA-minus by S&P Global Ratings and AA-plus by Fitch.
Piper Jaffray is expected to price the Denver Convention Center Hotel Authority's $273.91 million of Series 2016 senior revenue refunding bonds. The deal is rated Baa2 by Moody's and BBB-minus by S&P.
In the competitive arena, the Maryland Department of Transportation is selling $629.06 million of bonds in two separate offerings.
The sales consist of $385 million of Series 2016 consolidated transportation bonds and $244.06 million of refunding Series 2016 consolidated transportation bonds.
Both deals are rated Aa1 by Moody's, triple-A by S&P and AA-plus by Fitch.
Since 2006, the MDOT has issued roughly $3.7 billion of securities, with the largest issuance occurring in 2015, when it sold $961 million. The Old Line State's DOT saw a low year of issuance in 2014, when it issued $100 million.
The South Broward Hospital District, Fla., is selling $150.93 million of Series 2016A hospital refunding revenue bonds for the South Broward Hospital District Obligated Group. The deal is rated Aa3 by Moody's and AA by S&P.
The California Public Works Board is selling $147.39 million of Series 2016E lease revenue bonds for the Department of Corrections and Rehabilitation's RJ Donovan Correctional Facility. The deal is rated A1 by Moody's and A-plus by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.25 billion to $19.10 billion on Wednesday. The total is comprised of $3.94 billion of competitive sales and $15.16 billion of negotiated deals.