The municipal bond market on Wednesday is set for the New York City Transitional Finance Authority to be priced for institutions after a two-day retail order period.
Ramirez & Co. priced the TFA's $750 million of building aid revenue bonds for mom and pop investors on Monday and Tuesday.
"We've been very pleased with the strong retail demand for this TFA building aid revenue bond sale, with over $353 million in orders from individual investors received as of mid-afternoon, including over-subscriptions," said Eric Sumberg, spokesperson for New York City Comptroller Scott M. Stringer.
Primary Market
The Orange County Sanitation District, Calif., sold the largest competitive deal of the week on Tuesday. Morgan Stanley won the district's $131 million of wastewater refunding obligations with a true interest cost of 3.2963%. The bonds were priced to yield from 2.03% with a 5% coupon in 2028 to 2.50% with a 5% coupon in 2037. The issue is rated triple-A by Standard & Poor's and Fitch Ratings.
A $400 million taxable "Corporate Cusip" bond deal was priced on Tuesday by Wells Fargo Securities for the University of Notre Dame Du Lac in Indiana. The bonds were priced as a 2045 bullet maturity at par to yield 3.438%, or 95 basis points above the comparable Treasury maturity. The issue is rated triple-A by Moody's Investors Service.
Some of the other large offerings remaining for this week are:
- A $502 million Illinois Finance Authority revenue bond deal for Chicago's Rush University Medical Center Obligation Group to be priced by Goldman, Sachs on Thursday;
- A $400 million sale from the N.Y. Metropolitan Transportation Authority to be priced by JPMorgan on Thursday; and
- The Oregon Department of Transportation $378.96 million of highway user tax revenue bonds and senior lien refunding bonds to be priced by Morgan Stanley.
Secondary Market
Treasury prices were higher on Wednesday, with the two-year note yield down to 0.46% from 0.53% on Tuesday. The 10-year yield fell to 1.79% from 1.89%, while the 30-year yield declined to 2.41% from 2.48%.
Prices of top-quality municipal bonds were mixed on Tuesday. The yield on the benchmark 10-year general obligation was unchanged from 1.84% on Monday, while the yield on 30-year GOs was down one basis point to 2.62% from 2.63%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was at 97.6% compared to 96.3% on Monday, while the 30-year muni to Treasury ratio was at 105.7% versus 105.6%.
MSRB Reports Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,130 trades on Tuesday on volume of $9.921 billion. Most active on Tuesday, based on the number of trades, was the Savannah, Ga., Economic Development Authority's Savannah ALF LLC first mortgage revenue bond 7 1/4s of 01/2045, which traded 213 times with an average price of 100.00 and an average yield of 7.25%.
