Municipal bonds were weaker as Illinois came to market with $4.5 billion of general obligation bonds, the biggest deal of the year so far.

Primary market
On Wednesday morning, Barclays Capital priced the Land of Lincoln's $4.5 billion Series of November 2017D GOs.

The issue was priced to yield 2.38% in 2020, 2.75% in 2021, 3.15% in 2022, 3.27% in 2023, 3.39% in 2024, 3.52% in 2025, 3.63% in both halves of a split 2026 maturity, 3.68% in 2027 and 3.74% in 2028.

All maturities carry 5% coupons except for one half of 2026 which carries a 3.25% coupon.

The Illinois deal spread above the MMD triple-A scale was calculated at 126 basis points in 2020, 172 basis points in 2027 and 169 basis points in 2028.

The deal is rated Baa3 by Moody’s Investors Service, BBB-minus by S&P Global Ratings and BBB by Fitch Ratings. Moody’s and Fitch have negative outlooks on the state’s credit while S&P maintains a stable outlook.

Wells Fargo Securities priced the Washington Health Care Facilities Authority’s $345 million of Series 2017A taxable and Series 2017B tax-exempt revenue bonds for the MultiCare Health System.

The $264.08 million of Series 2017B tax-exempts were priced to yield from 1.09% with a 3% coupon in 2018 to 3.67% with a 3.50% coupon in 2038; a 2041 term bond was priced as 4s to yield 3.72%.

Information on the Series 2017A taxables was not immediately available.

The deal is rated Aa3 by Moody’s and AA-minus by S&P and Fitch. All three agencies have stable outlooks on the credit.

Since 2007, the authority has issued over $8 billion of debt with the most issuance occurring in 2008 when it sold $1.57 billion and the least happening in 2016 when it sold $31.6 million.

Morgan Stanley priced the Metropolitan Government of Nashville and Davidson County, Tenn.’s $245.38 million of Series 2017B water and sewer revenue bonds and Series 2017A water and sewer revenue green bonds.

The $89.67 million of Series 2017A water and sewer revenue green bonds were priced to yield from 1.33% with a 3% coupon in 2021 to 2.88% with a 5% coupon in 2037. A split 2042 maturity was priced as 3 3/8s to yield 3.46% and as 5s to yield 3.01% and a 2046 maturity was priced as 5s to yield 3.06%.

The $155.71 million of Series 2017B water and sewer revenue bonds were priced as 5s to yield from 1.33% in 2021 to 2.88% in 2037, 3.01% in 2042 and 3.06% in 2046.

The deal is rated Aa3 by Moody’s and AA by S&P.

Stifel is expected to price the city and county of San Francisco’s Community Facilities District No. 2014-1’s $200.83 million of Series 2017B special tax bonds and Series 2017B taxable green bonds for the Transbay Transit Center.

The deal is rated AA-plus by Fitch,

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $1.06 billion to $13.34 billion on Wednesday. The total is comprised of $4.56 billion of competitive sales and $8.78 billion of negotiated deals.

Secondary market
The yield on the 10-year benchmark muni general obligation rose two to four basis points from 1.96% on Tuesday, while the 30-year GO yield increased three to five basis points from 2.77%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were weaker on Wednesday. The yield on the two-year Treasury gained to 1.61% from 1.58% on Tuesday, the 10-year Treasury yield rose to 2.46% from 2.41% and yield on the 30-year Treasury bond increased to 2.96% from 2.93%.

On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 81.6% compared with 82.1% on Monday, while the 30-year muni-to-Treasury ratio stood at 94.9% versus 94.9%, according to MMD.

AP-MBIS 10-year muni at 2.288%, 30-year at 2.865%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was mixed on Wednesday.

The 10-year muni benchmark yield increased to 2.288% in mid-morning trade from the final read of 2.284% on Tuesday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield decreased to 2.865% from 2.866% on Tuesday.

The AP-MBIS benchmark index is a yield curve built on market data aggregated from MBIS member firms and is updated hourly on the Bond Buyer Data Workstation.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,794 trades on Tuesday on volume of $8.94 billion.

Data appearing in this article from Municipal Bond Information Services, including the AP-MBIS municipal bond index, is available on the Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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