Municipal bond traders are wrapping up their business on Wednesday, ahead of the Thanksgiving holiday on Thursday.
While the market will be open for an abbreviated session on Friday, desks will be minimally staffed and most participants will be enjoying leftovers from the fridge and football on TV.
Secondary Market
U.S. Treasuries were weaker on Wednesday. The yield on the two-year rose to 1.12% from 1.09% on Tuesday, the 10-year Treasury gained to 2.38% from 2.32%, while the yield on the 30-year Treasury bond increased to 3.05% from 3.01%.
Top quality municipal bonds finished weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose three basis points to 2.33% from 2.30% on Monday, while the yield on the 30-year increased two basis points to 3.08% from 3.06%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 100.5% compared to 98.6% on Monday, while the 30-year muni to Treasury ratio stood at 102.4% versus 101.8%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 46,492 trades on Tuesday on volume of $12.79 billion.
Primary Market
There were very few negotiated deals hitting the market this week, with no competitive sales larger than $100 million on this week's calendar.
JPMorgan Securities priced the State of New York Mortgage Agency's $82.97 million of homeowner mortgage revenue alternative minimum tax and non-AMT bonds on Tuesday.
The $64.03 million of Series 200 non-AMT bonds were priced at par to yield 3.90% in 2036 and as 3 1/2s to yield 2.35% as a PAC bond in in 2045. The $18.95 million of Series 201 AMT bonds were priced at par to yield from 1.10% in 2017 to 3.40% in 2027 and 3.85% in 2031. The SONYMA deal is rated Aa1 by Moody's Investors Service.
Bank of America Merrill Lynch priced the Pottsville Hospital Authority, Pa.'s $53.26 million of Series 2016B hospital revenue bonds for the Lehigh Valley Health Network. The issue was priced to as 4s to yield 4.27% in 2036, as 4 1/4s to yield 4.37% and as 5s to yield 4.04% in a split 2041 maturity and as 5s to yield 4.08% in 2045. The deal is rated A1 by Moody's and A-plus by S&P Global Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $4.52 billion to $14.40 billion on Wednesday. The total is comprised of $3.68 billion of competitive sales and $10.71 billion of negotiated deals.
