The municipal bond market is keeping its focus on new issues as more supply hits the screens on Wednesday. Included on the primary slate are two separate issues from Virginia totaling about $385 million and various other sizeable offerings. Muni bond prices were unchanged in early trading.
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Primary
- The Virginia Transportation Board will competitively sell $272.87 million of transportation capital project revenue bonds. The issue is rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
- Rice Financial Products is pricing the Virginia Small Business Financing Authority $112.465 million refunding revenue bonds for Hampton University. The bonds are rated A-minus by Standard & Poor's.
- Baltimore's $409.83 million water and wastewater revenue bonds will be priced by Wells Fargo Securities for institutions, new-money and refunding. The deal consists of senior series bonds rated Aa2 by Moody's and AA by S&P, and a sub series of bonds carrying Aa3 from Moody's and a AA-minus from S&P.
- The Dallas Area Rapid Transit District $402.305 million transit bonds will be priced by J.P. Morgan Securities. The bonds are rated Aa2 by Moody's and AA-plus by S&P.
- Barclays Capital will price the California Statewide Communities Development Authority $154.38 million refunding revenue bonds for the Huntington Memorial Hospital. The issue is rated A by S&P.
- Rice Financial Products is pricing the Virginia Small Business Financing Authority $112.465 million refunding revenue bonds for Hampton University. The bonds are rated A-minus by S&P.
Secondary
- Municipal bonds' yields were steady, with both the benchmark 10-year GO and the 30-year GO unchanged at 2.20% and 3.10%, respectively, according to the preliminary read of Municipal Market Data's triple-A scale.
- Munis were outperformed by Treasuries on Tuesday. The 10-year muni to Treasury ratio closed higher at 94.8% (from 93.6% on Monday) and the 30-year muni to Treasury ratio closed higher at 101.6% (from 101% on Monday.)
- Treasury priced were up with the two-year note yield down one basis point at 0.54% from Tuesday's market close. The 10-year yield lost seven basis points to 2.35% and the 30-year fell 13 basis points to 3.06%.
- Stock prices are lower. The Dow Jones Industrial Average is down 31.47 to 17,656.35, the S&P 500 is down 5.82 to 2,045.98 and the NASDAQ is off 25.63 to 4,676.81
Economic Indicators
The Federal Open Market Committee releases the minutes from its Oct. 28-29 meeting.
