The municipal bond market opened strong Thursday for the second straight day as the weakness in Wednesday's first quarter gross domestic product reassured investors.
"The market feels very strong," a New York trader said. "There's demand with limited supply. Anything with incremental yield is getting scooped up, which is not going to change anytime soon. It feels very rich."
The largest deal of the week, $1.4 billion of Los Angeles tax and revenue anticipation notes, were priced by Ramirez & Co. Thursday, to yield 0.11% with a 1.50% coupon.
The deal received a MIG 1 rating from Moody's Investors Service, SP-1-plus from Standard and Poor's and F1-plus from Fitch Ratings.
Wells Fargo Securities will sell $ 386.7 million of Sacramento County Sanitation District Financing Authority revenue bonds. The bonds mature serially from 2017 to 2036, with a term bond in 2044. The deal is rated Aa3 by Moody's, AA by S&P and AA-minus by Fitch.
Citigroup Global Markets will bring $ 321.8 million of Western Minnesota Municipal Power Agency revenue bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P.
Citigroup Global Markets will issue $213.7 million of Pflugerville, Texas, Independent School District unlimited tax bonds. The bonds mature serially from 2015 to 2039. The deal is rated not yet rated.
Stifel, Nicolaus and Co. will bring $183 million of Rancho Cucamonga Redevelopment Agency, Calif. tax allocation refunding bonds. The deal is rated A-plus by Moody's and AA-minus by S&P.
Treasuries strengthened Thursday morning, with the 30-year yield and the 10-year benchmark falling two basis points each to 3.38% and 5.56%, respectively. The two-year note slipped one basis point to 0.48%.
