After a busy day with a handful of deals over $500 million pricing, the primary will see yet another influx of issuance Wednesday; with six schedule deals ranging from $300 million to $1 billion expected to hit screens.
Secondary Market
Munis were unchanged on Wednesday morning , as the yield on the 10-year benchmark muni general obligation was steady at 1.73% from Tuesday, while the yield on the 30-year was unchanged at 2.56%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were mostly flat Wednesday morning. The yield on the two-year Treasury stayed at 0.80% from Tuesday, the 10-year Treasury yield was even at 1.75% and the yield on the 30-year Treasury bond increased to 2.52% from 2.51%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 99.1% compared to 89.3% on Monday, while the 30-year muni to Treasury ratio stood at 102.0% versus 91.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,782 trades on Tuesday on volume of $9.906 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $4.01 billion to $19.44 billion on Wednesday. The total is comprised of $4.90 billion of competitive sales and $14.54 billion of negotiated deals.
Primary Market
The market will pick up Wednesday right where it left off Tuesday, with lots of larger deals pricing.
Citi is scheduled to price the New Jersey Healthcare Financing Authority's $1 billion of revenue and refunding bonds for the Robert Wood Johnson Barnabas Health Obligated Group. It is anticipated that the deal will be feature $613 million of tax-exempt and $456 million of corporate CUISPs. The deal is rated A1 by Moody's Investors Service and A-plus by S&P Global Ratings.
Bank of America Merrill Lynch is expected to price the School District of Philadelphia's $817 million of general obligation, GO refunding and taxable bonds.
Since 2007, the school district of Philadelphia has sold just over $4 billion of securities, despite not issuing anything from 2012-2014. Wednesday's sale will put the district over $1 billion for this year, marking the third time since 2007 it has issued more than $1 billion in a year, with the others occurring in 2008 and 2010.
Morgan Stanley is on the docket to run the books on the Commonwealth Financing Authority, Pa.'s $758.81 million of federally taxable revenue bonds.
Citi will also run the books on San Diego Community College District's $612 million of GO bonds election of 2006 and GO refunding bonds. The deal is rated Aaa by Moody's.
BAML is also expected to price the Pennsylvania State Public School Building Authority's $561 million of project school lease revenue refunding bonds for the School District of Philadelphia.
In the competitive sector, the state of Georgia will be selling a total of $881.025 million of GO refunding bonds in two separate sales, which are broken down into $376.815 million and $504.210 million. Both deals are rated triple-A by Moody's, S&P and Fitch Ratings.
