NEW YORK – After two days of relatively slow activity, the tax-exempt market picked up the pace Wednesday morning.
“It’s busier this morning,” a New York trader said. “People are buying munis.”
Munis were stronger Wednesday morning, according to the Municipal Market Data scale. Yields inside five years were steady while yields outside six years fell up to two basis points.
On Tuesday, the two-year yield closed steady at 0.33% for the seventh consecutive trading session. The 10-year yield was flat at 1.95% while the 30-year yield was steady at 3.31%.
Munis followed Treasuries higher. The two-year Treasury yield fell one basis point to 0.27%. The benchmark 10-year yield and the 30-year yield each dropped two basis points to 1.99% and 3.13%.
In the primary market, Morgan Stanley is expected to price $352.1 million of Ascension Health Alliance senior credit group revenue bonds, rated Aa1 by Moody’s Investors Service, and AA-plus by Standard & Poor’s and Fitch Ratings.
Wells Fargo Securities is expected to price $285 million of New Jersey’s Garden State Preservation Trust open space and farmland preservation refunding bonds, rated Aa3 by Moody’s and AA-minus by Fitch.
In the competitive market, Milwaukee is expected to auction $227.5 million of general obligation securities in three pricings. The first two consist of $117.9 million and $9.63 million rated Aa2 by Moody’s and AA by Standard & Poor’s. The third pricing will consist of $100 million of short-term notes rated M1G-1 by Moody’s and SP-1-plus by Standard & Poor’s.
Also in the competitive market, New Jersey Environmental Infrastructure Trust is expected to issue $95.2 million of revenue bonds, rated triple-A in three pricings – a $68.6 million deal, a $21.8 million deal, and a $4.8 million pricing.
