LCRA deal prices as munis remain mixed

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Municipal bonds were mixed at mid-session with some Puerto Rico issues trading higher as the primary saw a bevy of new deals hit the screens.

Primary market
Bank of America Merrill Lynch priced the Lower Colorado River Authority, Texas’ $292.15 million of Series 2018 transportation contract refunding revenue bonds for the LCRA Transmission Services Corp. project.

Citigroup priced the Sacramento Municipal Utility District, Calif.’s $166.59 million of Series 2018F electric revenue refunding bonds.

JPMorgan Securities is expected to price the Tri-County Metropolitan Transportation District of Oregon’s $147.475 million of Series 2018A senior lien payroll tax revenue bonds.

Notes also feature prominently this week.

Stifel is set to price Riverside County, Calif.’s $340 million of 2018 tax and revenue anticipation notes.

Raymond James & Associates is expected to price the Houston Independent School District, Texas’ $200 million of maintenance tax notes.

Goldman Sachs received the official award on Los Angeles County’s $700 million of 2018-2019 tax and revenue anticipation notes.

In the competitive arena, Arlington County, Va., sold $153.555 million of Series 2018 general obligation public improvement bonds.

Wells Fargo Securities won the bonds with a true interest cost of 2.99%.

Since 2008, Arlington County has sold about $1.69 billion of securities, with the most issuance occurring in 2012 when it sold $219 million and the least in 2015 when it sold $77 million.
Loudoun County, Va., sold $148.275 million of Series 2018A general obligation public improvement bonds.

Citi won the bonds with a TIC of 2.9802%.

Evergreen School District No. 114, Wash., sold $114.7 million of unlimited tax Series 2018 GOs under the Washington state school district credit enhancement program.

Citi won the bonds with a TIC of 3.192%.

The Illinois Regional Transportation Authority sold $134.025 million of Series 2018B GOs.

Morgan Stanley won the bonds with a TIC of 3.822%.

Wednesday’s bond sales

Texas:
Click here for the LCRA deal

California:
Click here for the Sacramento deal

Click here for the LA County TRANS deal

Virginia:
Click here for the Arlington County deal

Click here for the Loudoun County deal

Washington:
Click here for the Evergreen deal

Bond Buyer 30-day visible supply at $10.33B
The Bond Buyer's 30-day visible supply calendar decreased $3.20 billion to $10.33 billion on Wednesday. The total is comprised of $5.13 billion of competitive sales and $5.21 billion of negotiated deals.

Secondary market
Municipal bonds were mixed on Wednesday, according to a midday read of the MBIS benchmark scale. Benchmark muni yields rose as much as one basis point in the one- and two-year, 11- to 13-year and 17- to 30-year maturities, fell as much as one basis point in the three- to nine-year and 14- to 16-year maturities and were unchanged in the 10-year maturity.

High-grade munis were also mixed, with yields calculated on MBIS’ AAA scale rising as much as one basis point in the one- and two-year, 12- and 13-year and 16- to 28-year maturities, falling in the three- to 11-year, 14-year and 30-year maturities and remaining unchanged in the 15-year and 29-year maturities.

Municipals were mixed on Municipal Market Data’s AAA benchmark scale, which showed yields as much as two basis point higher in the 10-year general obligation muni and two to four basis points higher in the 30-year muni maturity.

Treasury bonds were weaker as stock prices traded higher.

On Monday, the 10-year muni-to-Treasury ratio was calculated at 83.1% while the 30-year muni-to-Treasury ratio stood at 95.3%, according to MMD. The muni-to-Treasury ratio compares the yield of tax-exempt municipal bonds with the yield of taxable U.S. Treasury with comparable maturities. If the muni/Treasury ratio is above 100%, munis are yielding more than Treasury; if it is below 100%, munis are yielding less.

Puerto Rico bonds trading higher
Bondholders representatives on Puerto Rico’s about $18 billion each of general obligation and the Puerto Rico Sales Tax Financing Corp. bonds have reached an agreement to settle a dispute over sales tax revenue, according to published reports.

In active trading on Wednesday, the benchmark Puerto Rico Commonwealth Series 2014 GO 8s of 2035 were trading at a high price of 42 cents on the dollar compared to 41.125 cents on Tuesday, according to the MSRB’s EMMA website. Volume totaled $32.37 million in 21 trades compared to $690,000 in six trades on Tuesday.

The COFINA Series 2007A revenue 5.25s of 2057 were trading at a high price of 76.25 cents on the dollar compared to 68 cents on Tuesday, according to the EMMA website. Volume totaled $60.71 million in 20 trades compared to $10,000 in two trades on Tuesday.

The COFINA Series 2007B revenue 6.05s of 2036 traded at a high price of 77 cents on the dollar compared to 69 cents on Tuesday, according to the EMMA website. Volume totaled $11.76 million in 15 trades compared to $20.02 million in 17 trades on Tuesday.

The COFINA Series 2011C current interest revenue 5.25s of 2040 traded at a high price of 75.25 cents on the dollar compared to 67.633 cents on Tuesday, according to the EMMA website. Volume totaled $26.21 million in 13 trades compared to $670,000 in six trades on Tuesday.

Previous session's activity
The Municipal Securities Rulemaking Board reported 43,356 trades on Tuesday on volume of $14.07 billion.

California, New York and Texas were the states with the most trades, with the Golden State taking 14.204% of the market, the Empire State taking 11.536% and the Lone Star State taking 10.074%.

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.

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Primary bond market Secondary bond market State of California State of Texas State of New York Lower Colorado River Authority County of Los Angeles, CA Houston Independent School District County of Arlington, VA County of Loudoun, VA Illinois Regional Transportation Authority
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