The last new supply for the week will be coming out of the pipeline on Thursday including negotiated deals from well-known issuers in Pennsylvania and Oregon, as well as a triple-A competitive sale from Virginia.
Secondary Market
Top-shelf municipal bonds were mostly a little stronger on Thursday morning, as the yield on the 10-year benchmark muni general obligation was as much as one basis point lower from 1.73% on Wednesday, while the yield on the 30-year was also as much as one basis point lower from 2.56%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were mostly stronger on Thursday morning. The yield on the two-year Treasury was flat at 0.80% on Wednesday, the 10-year Treasury yield was lower at 1.72% from 1.75% and the yield on the 30-year Treasury bond decreased to 2.48% from 2.51%.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 98.9% compared to 99.1% on Tuesday, while the 30-year muni to Treasury ratio stood at 101.8% versus 102.0%, according to MMD.
Tax-Exempt Money Market Fund Inflows
Tax-exempt money market funds experienced inflows of $290.6 million, bringing total net assets to $127.64 billion in the week ended Oct. 17, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $1.96 billion to $127.35 billion in the previous week. This marks the first time this category has posted gains since the week of March 7.
The average, seven-day simple yield for the 242 weekly reporting tax-exempt funds dropped to 0.32% from 0.34% in the previous week.
The total net assets of the 860 weekly reporting taxable money funds decreased $7.51 billion to $2.469 trillion in the week ended Oct. 18, after an outflow of $16.87 billion to $2.477 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.14% from 0.13% the prior week.
Overall, the combined total net assets of the 1,102 weekly reporting money funds fell $7.22 billion to $2.597 trillion in the period ended Oct. 18, which followed an outflow of $18.83 billion to $2.604 trillion.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 43,702 trades on Wednesday on volume of $14.963 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $1.90 billion to $17.54 billion on Thursday. The total is comprised of $4.11 billion of competitive sales and $13.43 billion of negotiated deals.
Primary Market
Citi is expected to price the state of Oregon Facilities Authority's $280 million of revenue bonds for the Legacy Health Project. It is anticipated that the deal will mature serially from 2022 through 2037 and include terms in 2041 and 2046. The deal is rated A1 by Moody's Investors Service and AA-minus by S&P Global Ratings.
Loop Capital Market is slated to price the Pennsylvania Turnpike Commission's $186.34 million of turnpike subordinate revenue bonds. The deal is expected to mature serially from 2021 through 2036, with terms in 2041 and 2046. The deal is rated A3 by Moody's and A-minus by Fitch Ratings.
Well Fargo is on the docket to price the Norman, Okla., Regional Hospital Authority's $157.685 million of hospital revenue refunding bonds for the Norman Regional Hospital Authority Obligated Group. The deal is rated Baa1 by Moody's and BBB-plus by S&P.
Stifel is scheduled to price the Twin Rivers, Calif., Unified School District's $141 million of GO bonds election of 2006 and GO refunding bonds. The deal is rated A1 by Moody's and A-plus by S&P.
In the competitive arena, the state of Virginia is scheduled to sell $184.86 million of general obligation and refunding bonds. The deal is rated triple-A by Moody's, S&P and Fitch.
Since 2006, the commonwealth of Virginia has sold roughly $2.67 billion of securities, with the largest issuance occurring in 2009 with $412 million. The lowest issuance was in 2012, when the Old Dominion state sold just $95 million.
Also, the Orange County, Calif., Sanitation District will sell $107.4 million of revenue refunding certificate of anticipation notes. The deal is rated triple-A by S&P and Fitch.
