Municipal bond buyers will focus on the high-rated, but high-yielding sales tax securitization coming from Chicago on Wednesday.
The MBIS municipal non-callable 5% GO benchmark scale was mixed in early trading.
The 10-year muni benchmark yield fell to 2.337% on Wednesday from the final read of 2.369% on Tuesday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield rose to 2.830% from 2.829%.
The MBIS benchmark index is updated hourly on the Bond Buyer Data Workstation.
U.S. Treasuries were mixed in early activity. The yield on the two-year Treasury rose to 2.04% on Wednesday from 2.01% on Tuesday, the 10-year Treasury yield gained to 2.56% from 2.55% and the yield on the 30-year Treasury decreased to 2.83% from 2.84%.
Top-rated municipal bonds finished stronger on Tuesday. The yield on the 10-year benchmark muni general obligation fell two basis points to 2.10% from 2.12% on Friday, while the 30-year GO yield dropped two basis points to 2.69% from 2.71%, according to the final read of MMD’s triple-A scale.
On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 82.6% compared with 83.2% on Friday, while the 30-year muni-to-Treasury ratio stood at 94.9% versus 95.0%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,213 trades on Tuesday on volume of $9.74 billion.
On Wednesday, Goldman Sachs is set to price the Sales Tax Securitization Corp.’s $898.07 million of Series 2018A sales tax securitization bonds.
The Chicago deal is rated AA by S&P Global Ratings, and AAA by Fitch Ratings and Kroll Bond Rating Agency.
JPMorgan Securities is expected to price the Orlando Utilities Commission, Fla.’s $150.18 million of Series 2018A utility system revenue bonds.
The deal is rated Aa2 by Moody’s and AA by S&P and Fitch.
Loop Capital Markets is expected to price the Pasadena Independent School District, Texas’ Series 2018 unlimited tax school building bonds.
The deal is backed by PSF and rated triple-A by Moody’s and S&P.
In the competitive arena on Wednesday, the University of Kentucky is selling $210 million of Series 2018A general receipt bonds.
The deal is rated Aa2 by Moody’s and AA by S&P.
Since 2009 the university has sold about $1.17 billion of bonds, with the most issuance occurring in 2014 when it sold $327 million. UK did not come to market in 2011 and 2013.
In the short-term competitive arena, the New York Metropolitan Transportation Authority is planning to sell $500 million of Series 2018A transportation revenue bond anticipation notes.
The BANs are rated MIG1 by Moody’s, SP1-plus by S&P and F1-plus by Fitch.
Bond Buyer 30-day visible supply at $7.72B
The Bond Buyer's 30-day visible supply calendar increased $820.5 million to $7.72 billion on Wednesday. The total is comprised of $3.01 billion of competitive sales and $4.71 billion of negotiated deals.
Data appearing in this article from Municipal Bond Information Services, including the 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.