Top-shelf municipal bonds were substantially weaker on Wednesday, according to traders who saw several big deals hit the screens, led by Chicago's $1 billion O'Hare Airport deal.

The yield on the 10-year benchmark muni general obligation rose five to seven basis points from 2.45% on Tuesday, while the yield on the 30-year increased eight to 10 basis points from 3.16%, according to a read of Municipal Market Data's triple-A scale.

Prices eroded on a stronger-than-expected private payroll report and news that OPEC ministers agreed on a deal to cut oil production.

The ADP Research Institute said that private sector employment increased 216,000 in November. Economists surveyed by IFR Markets had expected a gain of 165,000 for the month.

U.S. Treasuries were weaker. The yield on the two-year Treasury rose to 1.12% from 1.10% on Tuesday, the 10-year Treasury gained to 2.38% from 2.30%, while the yield on the 30-year Treasury bond increased to 3.05% from 2.95%.

MSRB: Previous Session's Activity

The Municipal Securities Rulemaking Board reported 55,324 trades on Tuesday on volume of $14.20 billion.

Primary Market

Morgan Stanley priced Chicago's O'Hare International Airport's $1.11 billion of general airport senior lien revenue bonds on Wednesday.

The $735.98 million of Series 2016D bonds, not subject to the alternative minimum tax, were priced to yield from 2.04% with a 5% coupon in 2020 to 4.05% with a 5.25% coupon in 2037; a 2042 maturity was priced as 5 1/4s to yield 4.12%, a 2047 maturity was priced as 5s to yield 4.26% and a 2052 maturity was priced as 5s to yield 4.41%.

The $155.88 million of Series 2016E non-AMT bonds were priced to yield from 2.90% with a 5% coupon in 2024 to 3.48% with a 5.25% coupon in 2028.

The $155.96 million of Series 2016F non-AMT bonds were priced to yield from 1.35% with a 2% coupon in 2018 to 4.40% with a 4.25% coupon in 2037; a 2042 maturity was priced as 4 1/4s to yield 4.47%, a 2047 maturity was priced as 4 1/4s to yield 4.51% and a 2052 maturity was priced as 5s to yield 4.41%.

The $64.99 million of Series 2016G AMT bonds were priced to yield from 2.39% with a 5% coupon in 2020 to 4.15% with a 5.25% coupon in 2031; a 2037 maturity was priced as 5s to yield 4.50%, a 2042 maturity was priced as 5s to yield 4.57%, a 2047 maturity was priced as 5s to yield 4.61% and a 2052 maturity was priced as 5s to yield 4.76%.

The deal is rated A by S&P Global Ratings and Fitch Ratings except for the Series 2016F 2035-2047 maturities, which are insured by Build America Mutual and rated AA by S&P.

Raymond James & Associates priced the New York City Municipal Water Finance Authority's $419.2 million of Fiscal 2017 Series CC water and sewer system second general resolution revenue bonds for institutions after it held a retail order period on Tuesday. Rice Financial Products was joint leader manager with Barclays Capital and Siebert Cisneros Shank & Co. serving as co-senior managers on the transaction.

The $330.85 million of Subseries CC-1 bonds were priced for institutions as 5s to yield 3.71%, as 4s to yield 4.07% and as 5 1/4s to yield 3.61% in a triple-split 2046 maturity. The $88.35 million of Subseries CC-2 bonds were priced as 5s to yield 2.10% in a 2023 bullet maturity. The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch.

In the competitive arena on Wednesday, Massachusetts sold $600 million of consolidated loan of 2016 general obligation bonds in three separate offerings.

Bank of America Merrill Lynch won the $300 million of Series J GOs with a true interest cost of 4.11%. The issue was priced to yield from 3.42% with a 5% coupon in 2036 to 4% at par in 2040 and priced as 4s to yield 4.06% in 2045 and 4.07% in 2046.

Citigroup won the $150 million of Series I GOs with a TIC of 3.67%. The issue was priced as 5s to yield from 2.82% in 2027 to 3.34% in 2035.

Goldman Sachs won the $150 million of Series H GOs with a TIC of 2.61%. The issue was priced as 5s to yield from 2.20% in 2022 to 2.79% in 2026.

All three sales are rated Aa1 by Moody's and AA-plus by S&P and Fitch.

Montgomery County, Md., competitively sold $340 million of consolidated public improvement general obligation bonds of 2016 Series A.

Citi won the Series A GOs with a TIC of 3.28%. The issue was priced to yield from 0.95% with a 5% coupon in 2017 to 3.72% with a 4% coupon in 2036. The deal is rated triple-A by Moody's, S&P and Fitch.

The county's $96 million of Series B refunding GOs, originally slated for sale on Wednesday, was postponed.

Back in the negotiated sector, Barclays Capital is set to price the New Jersey Economic Development Authority's $970.7 million deal after it issued a premarketing scale on the bonds on Tuesday and updated it with yields on Wednesday.

The $250 million of Series 2016AAA school facilities construction bonds were premarketed with spreads of about 125 basis points over the interpolated MMD scale in 2018 (5s to yield 2.34%) to 208 basis points over MMD in 2036 (5s to yield 5.10%) and 205 basis points over MMD in 2041 (5s to yield 5.16%).

The $544.29 million of Series 2016BBB school facilities construction refunding bonds were premarketed with spreads of about 180 basis points over the interpolated MMD scale in 2021 (5s to yield 3.58%) to 195 basis points over MMD in 2023 (5s to yield 3.96%) and 210 basis points over MMD in the 2029-2031 maturities (5 1/2s to yield 4.76%, 4.84% and 4.90%, respectively) and 220 basis points over MMD in the second half of a split 2031 maturity (4 3/4s to yield 5%).

The deal is rated A3 by Moody's, BBB-plus by S&P and A-minus by Fitch.

Since 2006, the N.J. EDA has sold roughly $21.4 billion of securities, with the largest issuance occurring in 2008, when it issued $3.22 billion. The EDA has sold over $1 billion in every year since 2006, with the exception of 2009 when it issued $850 million. During that span, the authority has issued over $2 billion a year six times.

Barclays is also set to price the District of Columbia's $577.59 million of general obligation bonds after it issued a premarketing scale on the deal Tuesday and updated it with yields on Wednesday.

The $309.25 million of Series 2016D GOs were premarketed with spreads of about 16 basis points over the interpolated MMD scale in 2019 (3s to yield 1.52%) to 45 basis points over MMD in the 2036 and 2041 maturities (5s to yield 3.47% and 3.56%, respectively). The $187.34 million of Series 2016E GO refunding bonds were premarketed with spreads of about 12 basis points over the interpolated MMD scale in 2018 (5s to yield 1.21%) to 45 basis points over MMD in 2033 (5sto yield 3.37%).

The bonds are rated Aa1 by Moody's and AA by S&P and Fitch.

Bond Buyer Visible Supply

The Bond Buyer's 30-day visible supply calendar decreased $683 million to $17.27 billion on Wednesday. The total is comprised of $4.84 billion of competitive sales and $12.43 billion of negotiated deals.

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