The municipal bond market is set to see the last of the week's big issues priced on Wednesday, with the largest sale of the week on tap from California.
Wednesday's Primary
- Morgan Stanley is scheduled to price the Los Angeles Community College District, Calif.'s $1.3 billion general obligation and general obligation refunding bonds. The bonds are rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's. The deal is comprised of new-money and refunding bonds.
- Suffolk County, N.Y., will sell $410 million of tax anticipation notes in a Citi-led deal. The notes are rated SP1 by S&P and F1 by Fitch.
- JPMorgan Securities will price Massachusetts Clean Water Trust's Series 18 Non-AMT $232 million green bonds. The issue is rated triple-A by Moody's, S&P and Fitch Ratings.
- RBC Capital Markets is set to price $174 million Michigan Finance Authority hospital revenue refunding bonds for the MidMichigan Health Credit Group. The bonds are rated A1 by Moody's and A-plus by S&P.
- Bank of America Merrill Lynch is slated to price the Palm Beach County, Fla., School Board's $153 million certificates of participation. The issue is rated Aa3 by Moody's and AA-minus by Fitch.
- On the competitive slate, Baltimore County, Md., is slated to sell $200 million of bonds in two series: $84 million metropolitan district bonds and $116 million consolidated public improvement bonds.
Tuesday's Primary
In Texas, Morgan Stanley priced the Harris County-Houston Sports Authority's $563.013 million tax-exempt and taxable senior lien revenue refunding bonds and second lien revenue refunding bonds.
Wells Fargo Securities priced Dallas' $531.66 million general obligation refunding and improvement bonds.
In California, Bank of America Merrill Lynch priced $513 million Bay Area Toll Authority bonds in two separate issues. Separately, J.P. Morgan Securities priced $25 million Bay Area Toll Authority, San Francisco Bay Area, subordinate toll bridge revenue bonds, Series S-5.
Elsewhere in the Golden State, Bank of America Merrill Lynch priced the California Statewide Communities Development Authority's $549.505 million tax-exempt revenue bonds for the Loma Linda University Medical Center.
In other action, Bank of America Merrill Lynch priced the Northeast Ohio Regional Sewer District's $414.55 million wastewater improvement revenue and refunding bonds.
Secondary Market
Treasury prices were mostly higher on Wednesday with the two-year note yield declining to 0.61% from 0.62% on Tuesday. The 10-year yield dropped to 2.21% from 2.22% while the 30-year unchanged from 2.87% on Tuesday.
On Tuesday, high-grade municipal bond prices were higher. The yield on the benchmark 10-year general obligation bond fell five basis points to 2.02% from 2.07% on Monday while the yield on 30-year GOs dropped four basis points to 2.92% from 2.96%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni-to-Treasury ratio closed on Tuesday at 91.0% versus 91.7% on Monday; the 30-year muni to Treasury ratio closed at 101.5%, compared with 102.0% on Monday.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,993 trades for Tuesday on volume of $11.487 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 138 times with an average price of 100.059 and an average yield of 4.212%.
