The municipal bond market will see two mega-deals hit the screens on Thursday, representing both the negotiated and competitive sectors.

Secondary trading
The MBIS municipal non-callable 5% GO benchmark scale was stronger in early trading.

The 10-year muni benchmark yield fell to 2.276% on Thursday from the final read of 2.287% on Wednesday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield decreased to 2.738% from 2.770%.

The MBIS benchmark index, which is comprised of investment-grade municipal securities, is updated hourly on the Bond Buyer Data Workstation.

U.S. Treasuries were mixed on Thursday. The yield on the two-year Treasury rose to 1.80% from 1.79%, the 10-year Treasury yield was steady from 2.36% and the yield on the 30-year Treasury decreased to 2.74% from 2.75%.

Top-rated municipal bonds finished stronger on Wednesday. The yield on the 10-year benchmark muni general obligation fell four basis points to 2.01% from 2.05% on Tuesday, while the 30-year GO yield dropped seven basis points to 2.61% from 2.68%, according to the final read of MMD’s triple-A scale.

On Wednesday, the 10-year muni-to-Treasury ratio was calculated at 85.5% compared with 85.4% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 95.4% versus 96.4%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 51,365 trades on Wednesday on volume of $20.86 billion.

Primary Market
In the competitive arena, Empire State Development is selling $1.78 billion of general purpose state personal income tax revenue bonds for the New York State Urban Development Corp. in five separate offerings.

The deals consist of $588.96 million of Series 2017D taxable Maturity Group 1 bonds, $436.65 million of Series 2017D taxable Maturity Group 2 bonds, $310.98 million of Series 2017C tax-exempt Maturity Group 3 bonds, $228.17 million of Series 2017C tax-exempt Maturity Group 2 bonds, and $216.16 million of Series 2017C tax-exempt Maturity Group 1 bonds.

The deals are rated AAA by S&P Global Ratings and AA-plus by Fitch Ratings.

Since 2007, the ESDC has issued roughly $19.47 billion of bonds, with the most issuance before this year occurring in 2013 when it sold $3.28 billion of bonds. The corporation did not come to market in 2012.

In the negotiated sector, JPMorgan Securities is expected to price Partners Healthcare System’s $1.2 billion of Series 2017 revenue bonds.

Bank of America Merrill Lynch is expected to price Philadelphia’s $721 million of Series 2017A non-AMT and Series 2017B AMT airport revenue and refunding bonds.

The deal is rated A1 by Moody’s Investors Service and A by S&P and Fitch.

Morgan Stanley is expected to price the Broward County Scghool Board, Fla.’s $209.84 million of Series 2017B&C certificates of participation.

The deal is rated Aa3 by Moody’s

Bond Buyer 30-day visible supply at $12.95B
The Bond Buyer's 30-day visible supply calendar decreased $2.76 billion to $12.95 billion on Thursday. The total is comprised of $2.40 billion of competitive sales and $10.55 billion of negotiated deals.

Tax-exempt money market funds saw inflows
Tax-exempt money market funds experienced inflows of $271.3 million, bringing total net assets to $130.50 billion in the week ended Dec. 11, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an inflow of $1.06 million to $130.23 billion in the previous week.

The average, seven-day simple yield for the 199 weekly reporting tax-exempt funds increased to 0.53% from 0.51% in the previous week.

The total net assets of the 827 weekly reporting taxable money funds increased $34.30 billion to $2.682 trillion in the week ended Dec. 12, after an inflow of $18.54 billion to $2.648 trillion the week before.

The average, seven-day simple yield for the taxable money funds rose to 0.76% from 0.74% from the prior week.

Overall, the combined total net assets of the 1,026 weekly reporting money funds increased $34.57 billion to $2.813 trillion in the week ended Dec. 12, after inflows of $19.60 billion to $2.778 trillion in the prior week.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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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.