Top quality municipal bonds were weaker at mid-session, according to traders, as the last big supply of the week started to hit the market on Thursday.

Secondary market
The yield on the 10-year benchmark muni general obligation rose as much as one basis point from 1.83% on Wednesday, while the 30-year GO yield increased as much as two basis points from 2.66%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 1.32% from 1.31% on Wednesday as the 10-year Treasury yield rose to 2.21% from 2.18% while the yield on the 30-year Treasury bond increased to 2.86% from 2.84%.

On Wednesday the 10-year muni to Treasury ratio was calculated at 84.0%, compared with 85.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 93.8% versus 94.8%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,928 trades on Wednesday on volume of $13.86 billion.

Primary Market
Wells Fargo Securities will be pricing on Thursday the city of St. Louis, Mo.’s $263.25 million of airport refunding and revenue bonds for the St. Louis Lambert International Airport.

A market source said a premarketing scale had been released in the morning.

The $127 million of Series 2017A airport revenue refunding bonds not subject to the alternative minimum tax were premarketed to yield from about 25 basis points over the comparable MMD read in 2020 to about 50 basis points over the comparable MMD in 2032.

The $76.9 million of Series 2017B airport revenue refunding bonds subject to the AMT were premarketed to yield from about 35 basis points over the comparable MMD read in 2019 to about 70 basis points over the comparable MMD in 2027.

The $32.63 million of Series 2017C airport revenue bonds not subject to the alternative minimum tax were premarketed to yield from about 52 basis points over the comparable MMD read in 2042 and 2047.

The $27.11 million of Series 2017D airport revenue bonds subject to the alternative minimum tax were premarketed to yield from about 60 basis points over the comparable MMD read in 2023 to about 72 basis points over the comparable MMD in 2037.

The deal, which is insured by Assured Guaranty Municipal, is rated A2 by Moody’s Investors Service and AA by S&P Global Ratings with underlying ratings of A3 and A-minus.

Fifth Third Securities is expected to price New Hanover County, N.C.’s $213.76 million of Series 2017 hospital revenue bonds for the New Hanover Regional Medical Center.

The deal is rated A1 by Moody’s and A-plus by S&P.

In the short-tern sector, JPMorgan is set to price Riverside County, Calif.’s $340 million of 2017 tax and revenue anticipation notes.

In the competitive arena, the Clark County School District, Nev., sold $473.88 million of bonds in two separate offerings.

JP Morgan won the $412.31 million of Series 2017A limited tax general obligation building and refunding bonds with a true interest cost of 2.55%. The bonds were priced to yield from 0.93% with a 5% coupon in 2018 to 3.32% with a 4% coupon in 2037.

Citi won the $61.57 million of Series 2017B limited tax GO refunding bonds additionally secured by pledged revenues with a TIC of 1.12%.

The deals are rated A1 by Moody’s and AA-minus by S&P.

Since 2007, the Clark County School District has issued over $4 billion of debt with the most issuance occurring in 2007 when it sold $1.12 billion of bonds. The school district sold the least amount of securities in 2011 when it issued 98.6 million.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $1.25 billion to $7.27 billion on Thursday. The total is comprised of $3.78 billion of competitive sales and $3.50 billion of negotiated deals.

Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $1.1 billion, bringing total net assets to $130.44 billion in the week ended June 5, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $347.4 million to $129.33 billion in the previous week.

The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds dropped to 0.31% from 0.32% in the previous week.

The total net assets of the 851 weekly reporting taxable money funds increased $3.51 billion to $2.501 trillion in the week ended June 6, after an inflow of $8.66 billion to $2.498 trillion the week before.

The average, seven-day simple yield for the taxable money funds increased to 0.47% from 0.46% in the prior week.

Overall, the combined total net assets of the 1,083 weekly reporting money funds increased $4.61 billion to $2.632 trillion in the week ended June 6, after inflows of $8.31 billion to $2.627 trillion in the prior week.

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