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.
