Tax-exempts continued to remain bifurcated as traders noted the primary market felt firm and deals were going very well while the secondary market was lower.
"It's exactly that," a New York trader said, referring to primary deals being received very well while munis in the secondary market followed Treasuries lower. "The Wisconsin competitive deal is going very well."
In the primary market, Loop Capital Markets priced for retail $600.7 million of California State Public Works Board lease revenue and lease revenue refunding bonds, rated A2 by Moody's Investors Service and BBB-plus by Standard & Poor's and Fitch Ratings. Institutional pricing is expected Thursday.
Yields on the first series, $459.3 million of lease revenue bonds for various capital projects, ranged from 0.91% with a 4% coupon in 2015 to 3.63% with a 4% coupon in 2032. Bonds maturing between 2025 and 2031, and in 2037 were not offered for retail. The bonds are callable at par in 2022.
Yields on the second series, $53.6 million of lease revenue bonds for Riverside Campus projects, ranged from 1.14% with a 3% coupon in 2016 to 4.05% with a 4% coupon in 2037. The bonds are callable at par in 2022.
The third series, $67.2 million of lease revenue refunding bonds for the California State Prison in Lassen County, Susanville, were not offered for retail.
The fourth series, $20.6 million of lease revenue refunding bonds for the Richmond Laboratory project, yielded 0.75% with a 3% coupon in 2014 and 0.91% with a 4% coupon in 2015. Credits maturing in 2013 were not offered for retail.
Barclays priced for institutions $211.3 million of Pennsylvania Turnpike Commission turnpike subordinate revenue bonds following a retail order period Tuesday.
The first series, $118.1 million of turnpike subordinate revenue bonds, is rated A3 by Moody's and A-minus by Standard & Poor's and Fitch. Yields ranged from 0.75% with a 4% coupon in 2014 to 3.65% with a 5% coupon in 2042. Credits maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2022.
The second series, $93.2 million of motor license fund-enhanced turnpike subordinate special revenue bonds, are rated A1 by Moody's and AA by Standard & Poor's. Yields ranged from 0.55% with a 3% coupon in 2014 to 3.55% with a 5% coupon in 2042. The bonds are callable at par in 2022.
JPMorgan priced $222.3 million of Utah County hospital revenue bonds on behalf of the IHC Health Services, rated Aa1 by Moody's and AA-plus by Standard & Poor's.
Yields ranged from 2.03% with a 2.75% coupon in 2021 to 3.38% with a 5% coupon in 2043. The bonds are callable at par in 2021.
In the competitive market, Wells Fargo Securities bought $293.1 million of Wisconsin general obligation bonds, rated Aa2 by Moody's and AA by Standard & Poor's and Fitch.
The bonds yielded 1.85% with a 5% coupon in 2022 and 1.95% with a 5% coupon in 2023. Credits maturing between 2024 and 2033 were not formally re-offered.
On Tuesday, the 10-year Municipal Market Data yield jumped two basis points to 1.71% while the 30-year yield increased one basis point to 2.83%. The two-year was steady at 0.30% for the 15th consecutive trading session.
Treasuries continued to sell off after a weaker session Tuesday. The benchmark 10-year yield jumped eight basis points to 1.80% while the 30-year yield spiked up seven basis points to 2.99%. The two-year yield increased one basis point to 0.28%.