Primary Market
Barclays Capital will be pricing the Dormitory Authority of the State of New York's $1 billion general purpose state personal income tax revenue bonds for institutional investors after a one-day retail order period on Tuesday. The bonds are rated AAA by Standard & Poor's and AA-plus by Fitch Ratings.
Also on Wednesday, Citigroup is set to price the Broward County, Fla., School Board's $273 million certificates of participation. The COPs are rated A1 by Moody's Investors Service, A by S&P and A-plus by Fitch.
On Thursday, Citi will price the Oregon state Department of Administrative Services' $412 million lottery revenue bonds. The bonds are rated Aa2 by Moody's and triple-A by S&P.
Also on Thursday, Shelby County, Tenn., will sell a $172.6 million general obligation refunding bond issue in a competitive sale. This deal is rated Aa1 by Moody's and AA-plus by both S&P and Fitch.
Secondary Market
Treasury prices were mostly lower on Wednesday, with the two-year note yield rising to 0.64% from 0.62% on Tuesday. The 10-year yield increased to 1.98% from 1.96%, while the 30-year yield remained unchanged at 2.54%.
On Tuesday, prices of top quality municipal bond were substantially stronger. The yield on the benchmark 10-year general obligation dropped seven basis points to 1.89% from 1.96% on Monday, while the yield on 30-year GOs declined 10 basis points to 2.67% from 2.77%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was at 96.4% compared to 95.6% on Monday, while the 30-year muni to Treasury ratio was at 106.0% versus 106.4%.
MSRB Reports Previous Session's Activity
The Municipal Securities Rulemaking Board reported 45,155 trades on Tuesday on volume of $10.425 billion.
Most active on Tuesday, based on the number of trades, was the New Jersey Transportation Trust Fund Authority transportation program bonds, Series AA 4 1/4s of 2044, which traded 159 times with an average price of 102.109 and an average yield of 3.979%.
