The tax-exempt market had mixed results Wednesday as pricing on the week's largest deals got underway. Some deals bumped prices while others had to increase yields on certain maturities.
In general, fixed-income markets were hesitant ahead of the Federal Open Market Committee meeting announcement expected later this afternoon.
Munis were steady so far on Wednesday, according to the Municipal Market Data scale. On Tuesday, the 10-year tax-exempt yield held steady at 1.66%, hovering above its record low of 1.60% set July 26. The 30-year muni yield finished flat at 2.84%, five basis points above its record low of 2.79% set July 25. The two-year was steady at 0.29% for the fourth consecutive session.
Treasuries were weaker Wednesday. The benchmark 10-year yield rose three basis points to 1.51% while the 30-year yield jumped four basis points to 2.60%. The two-year was steady at 0.22%.
In the primary market, Goldman, Sachs & Co., priced for retail $1.15 billion of Triborough Bridge and Tunnel Authority - known formally as MTA Bridges and Tunnels - general revenue refunding bonds. The bonds are rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's and Fitch Ratings. Prices were not available by press time.
Barclays Capital repriced $427.3 million of California State University Trustees system-wide revenue bonds, following a retail order period Tuesday. The credit is rated Aa2 by Moody's and A-plus by Standard & Poor's.
Yields ranged from 0.24% with a 2% coupon in 2013 to 3.85% with a 3.75% coupon and 3.35% with a 5% coupon in a split 2042 maturity. The bonds are callable at par in 2022. Yields were lowered from retail pricing Tuesday as much as six basis points on the short-end, but raised four basis points on the 2032 maturity.
RBC Capital Markets priced $249.1 million of Houston, Texas, Combined Utility System first lien revenue refunding SIFMA index floating rate bonds, rated AA by Standard & Poor's and AA-minus by Fitch. Pricing details were not available by press time.
Goldman priced $116.5 million of Jacksonville, Fla., sales tax refunding revenue bonds a day ahead of schedule. The bonds are rated A1 by Moody's, A by Standard & Poor's, and A-plus by Fitch.
Yields ranged from 2.75% with a 5% coupon in 2023 to 3.31% with a 5% coupon in 2030. The bonds are callable at par in 2022 except bonds maturing in 2025.
On the competitive calendar, triple-A rated Maryland issued $708.6 million of general obligation state and local facilities loan bonds in four pricings.
Bank of America Merrill Lynch won the bid for $478.7 million. Yields ranged from 0.33% with a 5% coupon in 2015 to 2.84% with a 3% coupon in 2027. The bonds are callable at par in 2020.
JPMorgan won the bid for $191.6 million of refunding bonds. Prices were not yet available.
B of A Merrill won the bid for $23 million of taxable bonds. The bonds yielded 0.40% with a 0.40% coupon in 2015.
Morgan Stanley won the bid for $15.3 million of taxable bonds. Details were not available by press time.
"I think Maryland priced on the cheaper side," the New York trader said. "Maybe the bids were kind of weak. But it guarantees they will bump the scale. The sub-5s are cheap."