Top shelf municipal bonds were steady in early Wednesday activity, as traders look to see some more of the week's big new issue slate come to market.
Secondary Market
The yield on the 10-year benchmark muni general obligation was steady from 1.61% on Tuesday, while the 30-year muni yield was flat from 2.68%, according to the a read of Municipal Market Data's triple-A scale.
Treasuries were lower on Wednesday. The yield on the two-year Treasury rose to 0.74% from 0.68% on Tuesday, while the 10-year Treasury yield gained to 1.76% from 1.72% and the 30-year Treasury bond yield increased to 2.57% from 2.55%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 93.2% compared to 93.5% on Monday, while the 30-year muni to Treasury ratio stood at 104.9% versus 105.1%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,537 trades on Tuesday on volume of $8.44 billion.
Primary Market
Bank of America Merrill Lynch priced for retail Columbus, Ohio's $118.95 million of Series 2016-1 and Series 2016-2 various purpose general obligation refunding bonds.
The $111.66 million of Series 2016-1 unlimited tax bonds were priced to yield from 0.50% with a 3% coupon in 2017 to 2.48% with a 4% coupon in 2031.
The $7.30 million of Series 2016-2 bonds limited tax bonds were priced to yield from 1.16% with a 3% in 2022 to 1.88% with a 5% coupon in 2027.
The issue is rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
Stifel is expected to price Cleveland, Ohio's $150.50 million of airport system revenue bonds consisting of Series A bonds and Series B forward delivery bonds.
The issue is rated A2 by Moody's and AA by S&P.
The biggest deal of the day is coming when Citigroup prices the Pennsylvania Turnpike Commission's $365 million of turnpike subordinate revenue refunding bonds.
The deal is rated A3 by Moody's Investors Service and A-minus by Fitch Ratings.
Since 2006, the Commission has issued bonds an average of six times a year, selling about $13 billion. The largest issuances came in 2009 and 2014, when it offered $2.9 billion and $1.9 billion, respectively. The lows occurred in 2006 and 2007, when it issued $594 million and $532 million, respectively.
RBC Capital Markets is set to price the Regents of the University of New Mexico's $152.87 million issue consisting of Series 2016A tax-exempt subordinate lien system refunding and improvement bonds and Series 2016B taxable subordinate lien system refunding revenue bonds.
The deal is rated Aa2 by Moody's and AA by Standard & Poor's.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $3.12 billion to $9.08 billion on Wednesday. The total is comprised of $2.30 billion of competitive sales and $6.78 billion of negotiated deals.
