Munis Ending a Quiet Week Looking to Post-Holiday Volume

Municipal bond traders are winding up the week as they look forward to Thursday's Thanksgiving holiday.

While the market will have a full day on Wednesday, and will be open for an abbreviated session on Friday, nobody expects much of anything to happen. The primary market will be deathly quiet until next week, as there are no major deals scheduled Wednesday or Friday.

Secondary Market

Treasury yields were unchanged on Wednesday. The two-year Treasury yield was unchanged from 0.93% on Tuesday while the 10-year Treasury yield was flat from 2.24% and the 30-year yield remained at 3.00%.

On Tuesday, top-shelf municipal bonds finished stronger. The yield on the 10-year benchmark muni general obligation fell one basis point to 2.04% from 2.05% on Monday, while the 30-year yield dropped two basis points to 2.98% from 3.00%, according to the final read of Municipal Market Data's triple-A scale.

The 10-year muni to Treasury ratio was calculated on Tuesday at 91.2% from 91.3% on Monday, while the 30-year muni to Treasury ratio stood at 99.3% compared to 99.8%, according to MMD.

Primary Market

There are no major bond deals slated to be priced on Wednesday or on Friday.

However, next week's calendar is filled with new deals, both competitive and negotiated.

Topping the negotiated slate is the Kansas Department of Transportation's $400 million of Series 2015B highway revenue bonds scheduled to be priced by Morgan Stanley. The deal is rated Aa2 by Moody's Investors Service, triple-A by Standard & Poor's and AA-plus by Fitch Ratings.

Morgan Stanley is also expected to price the Regents of the University of Michigan's $312 million of Series 2015 revenue bonds. The issue is rated triple-A by Moody's and S&P.

RBC Capital Markets is set to price the Pennsylvania Turnpike Commission's $302 million of Series 2015B turnpike revenue bonds on Tuesday. The deal is rated A1 by Moody's and A-plus by Fitch.

Bank of America Merrill Lynch is set to price the Dormitory Authority of the State of New York's $292 million of Series 2015B dormitory facilities revenue bonds for retail investors on Tuesday ahead of the institutional pricing on Wednesday. The DASNY bond are rated Aa3 by Moody's and A-plus by Fitch.

Leading the competitive pack are two separate sales of general obligation bonds from Massachusetts totaling $550 million. On Tuesday, the Bay State will sell $400 million of consolidated loan of 2015 Series E and $150 million of consolidated loan of 2015 Series D bonds. Both issues are rated Aa1 by Moody's and AA-plus by S&P and Fitch.

On tap for Wednesday, the Maryland Department of Transportation will competitively sell $325 million of Series 2015, Third Issue, consolidated transportation bonds. The issue is rated Aa1 by Moody's, triple-A by S&P and AA-plus by Fitch.

In the short-term competitive arena, the New York Metropolitan Transportation Agency's $700 million of bond anticipation notes in six separate sales of $12 million each and one sale of $628 million on Wednesday. The BANs are rated MIG-1 by Moody's, SP-1-plus by S&P and F-1 by Fitch.

The District of Columbia will competitively sell $250 million of Fiscal Year 2016 GO tax revenue anticipation notes on Wednesday. The TRANs are rated MIG-1 by Moody's, SP-1-plus by S&P and F-1-plus by Fitch.

Bond Buyer Visible Supply

The Bond Buyer's 30-day visible supply calendar rose $2.81 billion to $10.24 billion on Wednesday. The total is comprised of $4.05 billion competitive sales and $6.19 billion of negotiated deals.

MSRB Previous Session's Activity

The Municipal Securities Rulemaking Board reported 37,543 trades on Tuesday on volume of $7.64 billion.

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