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