Los Angeles CCD, San Diego AG muni bond deals come to market
The last of the week’s big municipal bond deals came to market on Thursday as municipals wavered in mid-session trade.
Citigroup priced the Los Angeles Community College District’s $350 million tax-exempts consisting of Series J 2008 election general obligation bonds and Series A-1 2016 election GOs.
The $300 million of Series J GOs were priced to yield from 1% with a 2% coupon in 2018 to 2.90% with a 4% coupon in 2039; a 2041 maturity was priced as 4s to yield 2.94%.
The $50 million of Series A-1 GOs were priced as 2s to yield 1% in a 2018 bullet maturity.
The deal is rated Aa1 and MIG1 by Moody’s Investors Service and AA-plus by S&P Global Ratings.
Since 2007, the Los Angeles CCD has sold about $5.9 billion of debt with the most issuance occurring in 2014 when it sold $1.8 billion. The district did not come to market in 2011 or 2012.
JPMorgan Securities received the written award on the San Diego Association of Governments' $194.14 million of Series 2017A toll revenue first senior lien bonds for the South Bay Expressway.
The issue was priced to yield from 1.02% with a 4% coupon in 2018 to 2.69% with a 5% coupon in 2038; a 2042 maturity was priced as 5s to yield 2.72%.
The deal is rated A by S&P and A-minus by Fitch Ratings.
Bond Buyer reports 30-day visible supply
The Bond Buyer`s 30-day visible supply calendar decreased $2.84 billion to $6.17 billion on Thursday. The total is comprised of $3.01 billion of competitive sales and $3.16 billion of negotiated deals.
The yield on the 10-year benchmark muni general obligation rose as much as one basis point from 1.91% on Wednesday, while the 30-year GO yield gained as much as two basis points from 2.58%, according to a read of Municipal Market Data`s triple-A scale.
U.S. Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury was unchanged from 1.64%, the 10-year Treasury yield was flat from 2.32% and the yield on the 30-year Treasury increased to 2.81% from 2.78%.
On Wednesday, the 10-year muni-to-Treasury ratio was calculated at 82.3% compared with 83.3% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 92.7% versus 93.9%, according to MMD.
AP-MBIS 10-year muni at 2.227%, 30-year at 2.745%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was mixed at midday.
The 10-year muni benchmark yield fell to 2.227% on Thursday from the final read of 2.231% on Wednesday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield rose to 2.745% from 2.744%.
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 38,112 trades on Wednesday on volume of $13.33 billion.
Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $1.03 billion, raising total net assets to $129.24 billion in the week ended Nov. 6, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an outflow of $133.1 million to $128.20 billion in the previous week.
The average, seven-day simple yield for the 199 weekly reporting tax-exempt funds slipped to 0.47% from 0.48% the previous week.
The total net assets of the 833 weekly reporting taxable money funds increased $553.9 million to $2.581 trillion in the week ended Nov. 7, after an outflow of $9.12 billion to $2.580 trillion the week before.
The average, seven-day simple yield for the taxable money funds was unchanged at 0.70% from the prior week.
Overall, the combined total net assets of the 1,032 weekly reporting money funds increased $1.59 billion to $2.710 trillion in the week ended Nov. 7, after inflows of $9.25 billion to $2.708 trillion in the prior week.
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.