Three triple-A issuers auctioned bonds in the competitive market Wednesday, with few balances left over on the deals and prices richer than the benchmark scales, even in an overall weaker market.
Morgan Stanley won the bid for $209.5 million of triple-A Texas A&M University System bonds. Yields ranged from 0.15% with a 3% coupon in 2014 to 4.01% with a 4% coupon in 2033. Bonds with 5% coupons maturing between 2015 and 2018 were priced between three and eight basis points richer than Tuesday's Municipal Market Data scale. Bonds with 5% coupons maturing between 2020 and 2023 had spreads ranging from two to four basis points above the scale.
"The A&M's were pretty much pre-sold before the award," a New York trader said. "Only balances are left on the 2022 and the 2023 maturity."
Bank of America Merrill Lynch won the bid for $172.7 million of triple-A Georgia general obligation bonds. Yields ranged from 0.17% with a 5% coupon in 2014 to 4.04% with a 4% coupon in 2033. The bonds are callable at par in 2023. Yields on bonds maturing in 2014 were priced one basis point richer than Tuesday's MMD scale. Bonds with 5% coupon maturing between 2015 and 2023 were priced on the scale.
"Most of the Georgia bonds are gone," the trader said, adding about $30 million was left across five maturities.
Citi won the bid for $295 million of triple-A Montgomery County, Md., GOs. Pricing details were not available. Citi won the bid for a second pricing of $25.4 million of Montgomery County GOs. The bonds yielded 2.623% with a 5% coupon in 2023 and 2.78% with a 5% coupon in 2024. The bonds are callable at par in 2023. The bonds were priced right on the scale.
On Tuesday, the triple-A Municipal Market Data scale ended as much as four nine basis points weaker after nearly 10 basis point jump in yields on Friday. The 10-year yield rose four basis points to 2.62% and the 30-year yield rose one basis point to 4.16%. The two-year was steady for the 10th session at 0.34%.
Yields on the Municipal Market Advisors benchmark scale rose as much as five basis points Tuesday after an eight basis point increase Friday. The 10-year yield rose five basis points to 2.77% and the 30-year yield rose two basis points to 4.38%. The two-year yield fell one basis point to 0.48%.
Treasuries continued to post gains Wednesday. The benchmark 10-year yield slid five basis points to 2.73% and the 30-year yield fell three basis points to 3.83%. The two-year yield fell two basis points to 0.32%.