The primary market will see noteworthy deals from issuers in North Carolina, Texas, Wisconsin and Maryland on Wednesday.
Munis were mostly steady in early action on Wednesday, as seven maturities on the long end were as much as one basis point lower, according to traders.
Secondary Market
The yield on the 10-year benchmark muni general obligation was steady at 1.71% on Tuesday, while the 30-year muni yield was as much one basis point lower from 2.78%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were stronger on Wednesday morning. The yield on the two-year Treasury fell to 0.71% from 0.74% on Tuesday, while the 10-year Treasury yield dipped to 1.69% from 1.74% and the 30-year Treasury bond yield decreased to 2.54% from 2.60%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 98.1% compared to 95.3% on Monday, while the 30-year muni to Treasury ratio stood at 107.1% versus 106.2%, according to MMD.
Primary Market
The largest competitive sale of the week will come from North Carolina on Wednesday, as the Old North State sells $330 million of GO refunding bonds. The deal is rated triple-A by Moody's Investors Service, Standard and Poor's and Fitch Ratings.
BOSC, Inc., is scheduled to price Plano Independent School District, Texas' $305 million of unlimited tax refunding bonds, series 2016A and series 2016B on Wednesday.
Wisconsin is expected to competitively sell $297.685 million of general obligation bonds on Wednesday. The deal is rated AA by Fitch.
Since 2006, the state of Wisconsin issued bonds an average of 8 times a year, selling about $16 billion, with the largest issuances in 2008 and 2009 when it offered $1.9 billion and $2.4 billion, respectively, and the lows in 2006 and 2007, when it issued $821 million and $1.1 billion.
RBC Capital Market is slated to price the Maryland Economic Development Corporation's $135.32 million of student housing refunding revenue bonds for the University of Maryland at College Park Projects. The deal is backed by Assured Guaranty and is rated A2 by Moody's.
The state of Alabama will also sell two competitive issues totaling $125.655 million. The general obligation bonds are rated Aa1 by Moody's, AA by S&P and AA-plus by Fitch.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 39,523 trades on Tuesday on volume of $9.974 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $258 million to $7.13 billion on Wednesday. The total is comprised of $2.76 billion of competitive sales and $4.37 billion of negotiated deals.
