The municipal bond primary market is winding down on Thursday, with less than a handful of larger-sized deals still left to sell.

Secondary market
Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury rose to 1.33% from 1.31% on Wednesday, the 10-year Treasury yield gained to 2.18% from 2.17% and the yield on the 30-year Treasury bond was unchanged from 2.75%.

Top-rated municipal bonds finished stronger on Wednesday. The yield on the 10-year benchmark muni general obligation fell two basis points to 1.88% from 1.90% on Tuesday, while the 30-year GO yield dropped two basis points to 2.73% from 2.75%, according to the final read of Municipal Market Data's triple-A scale.

The 10-year muni-to-Treasury ratio was calculated at 86.5% on Wednesday, compared with 85.9% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 99.2% versus 98.6%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,460 trades on Wednesday on volume of $11.41 billion.

Primary Market
Bank of America Merrill Lynch is set to price the Pennsylvania Housing Finance Authority’s $207 million of single-family mortgage revenue bonds, consisting of Series 2017-124A subject to the alternative minimum tax and Series 2017-124B non-AMT.

The deal is rated Aa2 by Moody’s Investors Service and S&P Global Ratings.

Since 2007, the Pa. HFA has sold $4.77 billion of securities, with the most issuance occurring in 2007 when it sold $799 million. The agency issued the least amount of debt in 2014 when it sold $16 million. With Thursday’s sale, 2017 will become the second highest issuance year of the last decade.

Robert W. Baird is expected to price Alexandria, Va.’s $101 million of Series 2017C general obligation refunding bonds.

The deal is rated triple-A by Moody’s and S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $1.07 billion to $9.16 billion on Thursday. The total is comprised of $2.91 billion of competitive sales and $6.25 billion of negotiated deals.

Tax-exempt money market funds see outflows
Tax-exempt money market funds experienced outflows of $203 million, bringing total net assets to $130.17 billion in the week ended Aug. 21, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an outflow of $355.4 million to $130.37 billion in the previous week.

The average, seven-day simple yield for the 231 weekly reporting tax-exempt funds was unchanged at 0.33% from the previous week.

The total net assets of the 850 weekly reporting taxable money funds increased $25.64 billion to $2.568 trillion in the week ended Aug. 22, after an inflow of $14.86 billion to $2.543 trillion the week before.

The average, seven-day simple yield for the taxable money funds remained at 0.67% from the prior week.

Overall, the combined total net assets of the 1,081 weekly reporting money funds increased $25.4 billion to $2.698 trillion in the week ended Aug. 22, after inflows of $14.51 million to $2.673 trillion in the prior week.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.