Municipal bond traders are preparing for more new supply to enter the market on Wednesday after seeing the $2.69 billion California deal price on Tuesday.
Secondary Market
U.S. Treasuries were mixed on Wednesday. The yield on the two-year Treasury fell to 0.79% from 0.80% on Tuesday, the 10-year Treasury yield was flat from 1.57% and the yield on the 30-year Treasury bond increased to 2.24% from 2.23%.
Top-quality municipal bonds ended unchanged on Tuesday. The yield on the 10-year benchmark muni general obligation on Tuesday was unchanged from 1.42% on Monday, while the yield on the 30-year was steady at 2.12%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 90.6% on Tuesday compared to 90.7% on Monday, while the 30-year muni to Treasury ratio stood at 94.9% versus 95.7%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,601 trades on Tuesday on volume of $10.83 billion.
Primary Market
Barclays Capital Markets is scheduled to price the Minneapolis-St. Paul Metropolitan Airports Commission's $542.13 million of senior airport revenue refunding non-alternative minimum tax and subordinate airport revenue refunding non-AMT bonds.
The senior bonds are rated AA-minus by both S&P Global Ratings and Fitch Ratings, while the subordinate bonds are rated A-plus by S&P and Fitch.
Since 2008, the commission has sold about $1.4 billion of bonds, with the largest issuance occurring in 2014 when it sold about $264 million of securities. This week's sale will bring the commission to its highest sales level in a year since 2008. The commission did not issue any bonds in 2013 or 2015.
Jefferies is set to price the Pennsylvania Housing Finance Agency's $255 million of Series 2016-121 single-family mortgage revenue bonds on Wednesday.
The deal is rated Aa2 by Moody's Investors Service and AA-plus by S&P.
JPMorgan Securities is expected to price the Arizona Transportation Board's $172 million of Series 2016 highway revenue refunding bonds on Wednesday. The deal is rated Aa1 by Moody's and triple-A by Fitch.
Late Tuesday, JPMorgan released the final pricing and said it received the verbal award on the state of California's $2.69 billion of various purpose general obligation and GO refunding bonds.
The $615 million of GOs were priced to yield from 0.50% with a 5% coupon in 2017 to 1.99% with a 5% coupon in a 2030; a triple split 2046 maturity was priced as 3s to yield 3.05%, as 4s to yield 2.58% and as 5s to yield 2.28%.
The $2.08 billion of GO refunding bonds were priced to yield from 0.45% and 0.50% with 5% coupons in a split 2017 maturity to 2.55% with a 4% coupon and 2.25% with a 5% coupon in a split 2037 maturity.
The issue is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.74 billion to $9.95 billion on Wednesday. The total is comprised of $3.42 billion of competitive sales and $6.53 billion of negotiated deals.
