The municipal bond market is quiet, still absorbing well over $7 billion in new issuance, most of which came on one day — Wednesday. The market will be back to a full trading week next week, after the Martin Luther King Jr. holiday.
Primary Market
On the negotiated side, the Utah Transit Authority is coming to market with the biggest issue of next week, $831.6 million of sales tax revenue refunding bonds, Series 2015A and subordinated sale tax revenue bonds. The deal is rated Aa2 by Moody's Investors Service and AAA by Standard & Poor's and AA by Fitch Ratings.
The commonwealth of Kentucky State Property and Building Commission will be offering $385.2 million revenue bonds, which will be priced by Citi on Wednesday. It is rated Aa3 by Moody's and A-plus by both S&P and Fitch.
School District 46 in Illinois is coming with $286 million general obligation bonds, separated into four series and priced by Robert W. Baird & Co. on Tuesday. Series 2015A is $45.81 million limited school bonds, Series 2015B is $12.1 million limited refunding school bonds, Series2015C is $19.7 million refunding school bonds and Series 2015D is $1.7 million refunding school bonds.
Secondary Market
Treasury prices were mixed on Friday, with the two-year note yield down to 0.50% from 0.52% on Thursday. The 10-year yield decreased to 1.83% from 1.89%, while the 30-year yield rose to 2.39% from 2.47%.
The yield on the 10-year benchmark general obligation was up three basis points to 1.83% from 1.80% on Wednesday, while the yield on 30-year GO was up three basis points to 2.62% from 2.59% on Wednesday, according to the final read of MMD's triple-A benchmark scale.
The 10-year muni to Treasury ratio fell to 96.9% on Thursday from 97.0% on Wednesday, while the 30-year muni to Treasury ratio rose to 106.5% from 106.0%.
MSRB Reports Previous Session's Activity
The Municipal Securities Rulemaking Board reported 39,859 trades on Thursday on volume of $13.056 billion. Most active on Thursday, based on the number of trades, was the Texas Transportation Commission Central Texas Turnpike system revenue bonds second tier revenue refunding bond series 2015-C, which traded 115 times with an average price of 111.976 and an average yield of 3.51%.
Muni Money Funds See Outflows
Tax-exempt money market funds declined in the week ended Jan. 20, as outflows of $807.6 million caused total net assets to drop to $262.39 billion, according to The Money Fund Report, a service of iMoneyNet.com. The decrease compares to an outflow of $1.46 billion in the previous week.
The average, seven-day yield for the 396 weekly reporting tax-exempt money market funds remained unchanged at 0.01%, while the average maturity remained steady at 35 days.
The total net assets of the 993 weekly reporting taxable money market funds saw outflows of $7.02 billion in the week ended Jan. 20 as total net assets declined to $2.464 trillion; taxable funds saw inflows of $4.07 billion in the prior week.
The average, seven-day yield for the taxable money market funds rose to 0.02%, while the average maturity remained at 44 days.
Overall, the combined total net assets of the 1,389 weekly reporting money market funds declined $7.82 billion to $2.727 trillion in the week ended Jan. 20, after seeing after seeing gains of $2.61 billion in the previous week.
