The municipal bond market on Friday was looking ahead to the biggest calendar of the year as $14.2 billion is slated to hit the screens next week.
Ipreo estimates total volume for next week at $14.2 billion, up from total sales of $5.68 billion this week, according to revised data from Thomson Reuters.
Next week's slate is composed of $13.09 billion of negotiated deals and $1.14 billion of competitive sales.
Secondary Market
Treasuries were narrowly mixed on Friday. The yield on the two-year Treasury fell to 0.74% from 0.75% on Thursday, the 10-year Treasury yield rose to 1.57% from 1.56% and the yield on the 30-year Treasury bond increased to 2.29% from 2.28%.
Top-rated municipal bonds ended weaker on Thursday. The yield on the 10-year benchmark muni general obligation rose two basis points to 1.50% from 1.48% on Wednesday, while the yield on the 30-year climbed two basis points to 2.29% from 2.27%, according to the final read of Municipal Market Data's triple-A scale.
On Thursday, the 10-year muni to Treasury ratio was calculated at 96.6% compared to 94.6% on Wednesday, while the 30-year muni to Treasury ratio stood at 100.7% versus 99.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,863 trades on Thursday on volume of $18.32 billion.
Week's Primary Market
On Wednesday, California Treasurer John Chiang blocked Wells Fargo from bond underwriting and other business relationships. Wells Fargo Securities had been slated to price the California State Public Works Board's $527.54 million of lease revenue refunding bonds before it was postponed.
California named Loop Capital Markets and Raymond James & Associates as joint senior managers for the Public Works Board deal, which is now slated to come to market next week.
On Thursday, Jefferies priced the state of California's $200 million of GO index floating rates consisting of Series 2016B new issue bonds and a Series 2013C bond remarketing, replacing Wells Fargo Securities as senior manager after the ban. The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
Elsewhere, Citigroup priced Hawaii's $758.68 million of 2016 general obligation bonds, consisting of Series FG GOs and Series FH and FI refunding GOs. The deal is rated Aa1 by Moody's, AA-plus by S&P and AA by Fitch.
Morgan Stanley priced Massachusetts' $241.04 million of Series 2016A commonwealth transportation fund revenue bonds for rail enhancement and accelerated bridge programs and Series 2016A commonwealth transportation fund revenue refunding bonds. The deal is rated Aa1 by Moody's and triple-A by S&P.
Morgan Stanley also priced Massachusetts' $126.51 million of Series 2016A federal highway grant anticipation notes for the accelerated bridge program. The notes are rated Aa2 by Moody's and triple-A by S&P.
Barclays Capital priced the Board of Regents of the University of Texas System's $234.03 million of Series 2016H revenue financing system refunding bonds. The deal is rated triple-A by Moody's, S&P and Fitch.
Goldman Sachs priced the Anaheim Housing and Public Improvements Authority, Calif.'s $219.95 million of Series 2016A tax-exempt electric utility distribution system refunding and improvement revenue bonds. The deal is rated AA-minus by S&P and Fitch.
Citi priced Palomar Health, Calif.'s $213.05 million of Series 2016 A&B general obligation refunding bonds. The deal is rated A2 by Moody's, A by S&P and triple-A by Fitch.
Bank of America Merrill Lynch priced the Greater Orlando Aviation Authority, Fla.'s $182.02 million of Series 2016A and Series 2016B airport facilities revenue bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Ramirez & Co. priced the Los Angeles Community College District, Calif.'s $180.75 million of Series 2016 general obligation refunding bonds. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Bank of America Merrill Lynch priced Norfolk, Va.'s $176.17 million of Series 2016A GO capital improvement bonds and Series 2016B GO refunding bonds. The deal is rated Aa2 by Moody's and AA-plus by S&P and Fitch.
JPMorgan Securities priced the Harris County Hospital District, Texas' $158.3 million of Series 2016 senior lien refunding revenue bonds. The deal is rated A2 by Moody's and AA by Fitch.
BAML priced the Rancho California Water District's $104.5 million of tax-exempt and taxable revenue and refunding bonds. The deal is rated triple-A by S&P and AA-plus by Fitch.
BAML priced the Irvine Ranch Water District, Calif.'s $103.4 million of Series 2016 bonds. The deal is rated triple-A by S&P and Fitch.
BAML priced the Corona-Norco Unified School District, Calif.'s $101.32 million of Series 2016A&B GO refunding bonds. The deal is rated Aa2 by Moody's and AA-minus by S&P.
Raymond James & Associates priced the New Hampshire Municipal Bond Bank's $101.18 million of Series 2016D refunding bonds. The deal is rated Aa2 by Moody's and AA-plus by S&P.
In the competitive arena, Mecklenburg County, N.C., sold $200 million of Series 2016B GO public improvement bonds. Citi won the bonds with a true interest cost of 2.28%. The deal is rated triple-A by Moody's, S&P and Fitch.
Hennepin County, Minn., offered two separate issues totaling $155.32 million. Citi won the $95 million of Series 2016B GOs with a true interest cost of 2.77%. Citi also won the $60.32 million of Series 2016C GO refunding bonds with a TIC of 1.47%. The deals are rated triple-A by S&P and Fitch.
The Galena Park Independent School District, Texas, sold $102.71 million of Series 2016 unlimited tax school building and refunding bonds. Robert W. Baird won the bonds with a TIC of 2.62%. The deal is backed by the Permanent School Fund guarantee program and rated triple-A by S&P and Fitch.
Lipper Reports One Year of Inflows
For the 52nd week in a row, a complete year, municipal bond funds reported inflows, according to Lipper data released on Thursday.
The weekly reporters saw $664.257 million of inflows in the week ended Sept. 28, after inflows of $517.593 million in the previous week, Lipper said.
The four-week moving average remained positive at $663.289 million after being in the green at $604.298 million in the previous week. A moving average is an analytical tool used to smooth out price changes by filtering out fluctuations.
Long-term muni bond funds experienced inflows, gaining $479.393 million in the latest week after inflows of $327.449 million in the previous week. Intermediate-term funds had inflows of $96.318 million after inflows of $89.747 million in the prior week.
National funds had inflows of $563.967 million on top of inflows of $429.444 million in the previous week. High-yield muni funds reported inflows of $204.956 million in the latest reporting week, after inflows of $69.736 million the previous week.
Exchange traded funds saw inflows of $53.849 million, after inflows of $111.876 million in the previous week.
