After an action-packed day on Tuesday, the primary market will pick up right back where it left off on Wednesday, as more large deals are expected to be priced from issuers in Colorado, California, Georgia and South Carolina.
Secondary Market
Treasuries were little changed on Wednesday morning, as the yield on the two-year Treasury slipped to 0.93% from 0.94% on Tuesday while the 10-year Treasury yield was lower at 2.23% from 2.24% and the 30-year was flat from 2.97%.
On Tuesday, the yield on the 10-year benchmark muni general obligation was lower by one basis point to 1.98% from 1.99% on Monday, while the 30-year yield was two basis points lower to 2.90% from 2.92%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Tuesday at 88.5% from 89.6% on Monday, while the 30-year muni to Treasury ratio stood at 97.5% compared to 98.3%, according to MMD.
Primary Market
In the negotiated sector on Wednesday, RBC Capital Markets is expected to price the Park Creek Metropolitan District, Colo.'s $252.71 million of Series 2015A senior limited property tax supported revenue refunding bonds. The issue is rated triple-B by Fitch Ratings.
RBC is also scheduled to price the Southern California Municipal Water District's $250 million of bonds.
Wells Fargo is set to price the Municipal Electric Authority of Georgia's $200 million of general revenue bonds consisting of power revenue bonds, Project One subordinated bonds, and general resolution projects subordinated bonds. The power revenue bonds are rated A1 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch, while the Project One and general resolution subordinates are rated A2 by Moody's, A by S&P and A-plus by Fitch.
In the competitive sector, Clemson University in South Carolina will be selling two separate competitive issues totaling $210.8 million, consisting of $191 million of Series 2015B higher education revenue bonds and $19.8 million of Series 2015B athletic facilities revenue bonds. The timing couldn't be more perfect as the Tigers football program is the only undefeated team in major college football and will compete in the national semi-final on Dec. 31.
Since 2005, Clemson University has issued about $483 million of debt. The most issuance took place in 2014, 2005, and 2012 when the university sold $50 million, $37 million and $33 million of bonds, respectively. The university did not come to the market from 2006 to 2011 or in 2013. A stranger to the muni bond market, the university located in South Carolina has averaged less than one deal per year.
The university last sold bonds competitively on May 5, when Citi won $64.39 million with a TIC of 3.73%.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,151 trades on Tuesday on volume of $8.995 million.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $2.747 billion to $6.91 billion on Wednesday. The total is comprised of $1.15 billion competitive sales and $5.76 billion of negotiated deals.
