The municipal market opened on a steady note Wednesday morning, as Federal Reserve Board Chair Janet Yellen told the Joint Congressional Economic Committee that low interest rates remain warranted and gross domestic product would strengthen this year.
Citigroup Global Markets will bring $450 million of toll highway senior revenue bonds for the Illinois State Toll Highway Authority Wednesday, the largest negotiated deal of the week. The bonds will mature serially from 2025 to 2034 with a term bond in 2039. The deal is rated Aa3 by Moody's Investors Service and AA-minus by both Standard and Poor's and Fitch Ratings.
Harris County Flood Control District is scheduled to issue $195 million district improvement refunding bonds in a three-part issuance. The $50 million part of the issuance is tax-exempt, and the two other portions $70 million and $75 million are taxable.
Jefferies is the managing underwriter and the bonds received Aaa from Moody's and AAA from Standard & Poor's.
Bank of America Merrill Lynch will bring for retail a two-part deal totaling $195 million New Jersey Higher Education Student Assistance Authority student loan revenue bonds on Thursday. Both the senior subordinate parts of the deal are subject to the alternative minimum tax. The deal is rated Aa2 by Moody's and AA by S&P.
There are no deals over $100 million slated for the competitive market Wednesday.
Treasuries strengthened Wednesday morning, with the 30-year yields and the two-year notes falling one basis point each to 3.39% and 0.43%, respectively. The 10-year benchmark was unchanged from Tuesday's market close at 2.61%.
