A few big deals were still left to be priced for Thursday, but most municipal bond market participants were wait to see the results of the referendum vote on Britain's membership in the European Union.
Secondary Market
U.S. Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 0.78% from 0.75% on Wednesday, while the 10-year Treasury yield gained to 1.73% from 1.69% and the yield on the 30-year Treasury bond increased to 2.54% from 2.50%.
Top-rated municipal bonds finished steady to weaker on Wednesday. The yield on 10-year benchmark muni general obligation rose one basis point to 1.50% from 1.49% on Tuesday, while the 30-year muni yield was steady from 2.19%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 89.1% on Wednesday compared to 87.8% on Tuesday, while the 30-year muni to Treasury ratio stood at 87.7% versus 87.7%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 40,329 trades on Wednesday on volume of $13.71 billion.
Primary Market
In the competitive arena on Thursday, the New Mexico Finance Authority is selling $116.51 million of Series 2016D senior lien public project revolving fund revenue bonds.
The deal is rated Aa1 by Moody's Investors Service and triple-A by S&P Global Ratings.
The authority last competitively sold comparable bonds on Jan. 28 when JPMorgan Securities won $52 million of Series 2016A tax-exempt senior lien public project revolving fund revenue bonds with a true interest cost of 1.94%.
Since 2006, the NMFA has issued about $3.87 billion of debt, with the largest issuance occurring in 2010 when it sold $726 million of securities. The authority has issued no more than $300 million in a year, seven times since 2006, including the past six years.
Also upcoming, PNC Capital Markets is expected to price Allegheny County, Pa.'s $276 million of Series C75 and C76 general obligation bonds. The deal is rated A1 by Moody's and AA-minus by S&P.
PNC is also expected to price the Pennsylvania Public School Building Authority's $131 million of taxable and tax-exempt Series A and B bonds for the Harrisburg School District.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.13 billion to $9.37 billion on Thursday. The total is comprised of $3.21 billion of competitive sales and $6.16 billion of negotiated deals.
Tax-Exempt Money Market Funds See Outflows
Tax-exempt money market funds experienced outflows of $2.62 billion, bringing total net assets to $202.47 billion in the week ended June 20, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $3.31 million to $205.09 billion in the previous week.
The average, seven-day simple yield for the 290 weekly reporting tax-exempt funds increased to 0.07% from 0.06% last week.
The total net assets of the 897 weekly reporting taxable money funds decreased $16.34 billion to $2.487 trillion in the week ended June 21, after an outflow of $4.98 billion to $2.504 trillion the week before.
The average, seven-day simple yield for the taxable money funds remained at 0.11%.
Overall, the combined total net assets of the 1,187 weekly reporting money funds decreased $18.96 billion to $2.690 trillion in the period ended June 21, which followed an outflow of $8.29 billion to $2.709 trillion.
