The summer repeat season kicks into high gear Wednesday. After a busy day Tuesday, the municipal market will see a rerun as another surge of issuance is expected to hit screens.
Secondary Market
Treasuries were stronger on Wednesday morning. The yield on the two-year Treasury declined to 0.69% from 0.71% on Tuesday, the 10-year Treasury yield dropped to 1.52% from 1.56% and the yield on the 30-year Treasury bond decreased to 2.24% from 2.27%.
Munis finished the day unchanged on Tuesday. The yield on the 10-year benchmark muni general obligation was steady at 1.45% from Monday, while the yield on the 30-year muni was flat at 2.18%, according to a final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 93.9% compared to 91.7% on Monday, while the 30-year muni to Treasury ratio stood at 96.6% versus 94.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,236 trades on Tuesday on volume of $11.41 billion.
Primary Market
Barclays Capital Markets is expected to price the Regents of the University of California Medical Center's $1.05 billion of Series 2016L bonds and Series 2016M taxables on Wednesday after a one-day retail order period on Tuesday. The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings.
Since 2006, the issuer has sold $22.57 billion of securities, with its highest volume in 2013 when it sold $4.7 billion. The Regents have only issued less than $1 billion twice since 2006 – in 2008 and 2014.
Citi is scheduled to price the Utility Debt Securitization of New York's $475 million of restructuring bonds. The deal is rated triple-A by the big three rating agencies.
In the competitive arena, the Louisville/Jefferson County Metropolitan Sewer District will be selling two separate sales totaling $102.03 million of sewer and drainage system revenue refunding bonds. The deal is rated Aa3 by Moody's and AA by S&P.
Citi is also slated to price the city of Port St. Lucie, Fla.'s $210 million of utility system revenue refunding bonds. The deal is rated A-plus by both S&P and Fitch Ratings.
Piper Jaffray is expected to price Johnson County, Kan., Unified School District's $191.08 million of GO bonds. The deal is rated Aa2 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $1.933 billion to $9.83 billion on Wednesday. The total is comprised of $3.09 billion of competitive sales and $6.74 billion of negotiated deals.
