Municipal bond traders will be watching what kind of reception Illinois's $4.5 billion general obligation deal, the biggest of the year so far, gets on Wednesday.

Secondary market
U.S. Treasuries were weaker on Wednesday. The yield on the two-year Treasury gained to 1.60% 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 2.97% from 2.93%.

Municipal bonds finished weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.96% from 1.95% on Monday, while the 30-year GO yield increased three basis points to 2.77% from 2.74%, 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 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 2.285%, 30-year at 2.862%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was mixed on Wednesday.

The 10-year muni benchmark yield increased to 2.285% in early trading, compared to 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 2.862% 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.

Primary market
On Wednesday, Barclays Capital is set to price the marquee deal of the week — Illinois’ $4.5 billion Series of November 2017D general obligation bonds.

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.

On Tuesday, the Illinois spread above the MMD triple-A scale was calculated at 115 basis points in 2020 and 170 basis points in 2028.

Wells Fargo Securities is expected to price the Washington Health Care Facilities Authority’s $344.61 million of Series 2017A taxable and Series 2017B tax-exempt revenue bonds for the MultiCare Health System.

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

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 is set to price the Metropolitan Government of Nashville and Davidson County, Tenn.’s $269.8 million of Series 2017B water and sewer revenue bonds and Series 2017A water and sewer revenue green bonds.

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.

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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