More bond deals hit the screens as municipals turn mixed

Municipal bonds were trading mixed at midday as the last of the week’s hefty supply was coming to market.

Secondary market
The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 2.17% on Wednesday, while the 30-year GO yield was unchanged from 3.01%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury was unchanged from 1.34% on Wednesday, while the 10-year Treasury yield gained to 2.40% from 2.38%, and the yield on the 30-year Treasury bond increased to 3.04% from 3.01%.

On Wednesday, the 10-year muni to Treasury ratio was calculated at 90.0%, compared with 90.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 99.0%, versus 100.1%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 44,147 trades on Wednesday on volume of $14.2 billion.

Primary market
Citigroup priced the Louisiana Public Facilities Authority’s $407.78 million of Series 2017 refunding revenue bonds for the Ochsner Clinic Foundation.

The bonds were priced at par to yield 1.39% in 2019 to 4.08% with a 4% coupon in 2037. A term bond in 2042 was priced to yield 4.16% with a 4% coupon and 3.81% with a 5% coupon in a split maturity. A term bond in 2046 was priced to yield 3.85% with a 5% coupon.

The deal is rated A3 by Moody’s Investors Service and A-minus by Fitch Ratings.

Since 2007, the Louisiana PFA has issued roughly $7.91 billion of securities, with the most issuance occurring in 2008 when it sold $1.84 billion of bonds. The authority saw a low year of issuance in 2012, when it sold $100 million.

BB-051217-MUN

Bank of America Merrill Lynch priced the city and county of Denver’s $185.39 million of Series 2017A water revenue bonds and Series 2017B green bonds. The bonds are being issued through Denver’s Board of Water Commissioners.

The $143.655 million of green bonds were priced to yield from 1.17% with a 5% coupon in 2020 to 2.54% with a 5% coupon in 2029. A term bond in 2042 was priced to yield 3.46% with a 4% coupon and a term bond in 2047 was priced to yield 3.16% with a 5% coupon.

The $41.735 million of Series 2017B bonds were priced to yield from 2.54% with a 5% coupon in 2029 to 3.55% with a 3.5% coupon in 2038. The deal is rated triple-A by Moody’s, S&P and Fitch.

BAML priced the Hayward Area Recreation and Park District, Alameda County, Calif.’s $125 million of election of 2016 general obligation bonds.

The bonds were priced to yield from 0.84% with a 5% coupon in 2018 to 3.48% with a 4% coupon in 2037. A term bond in 2042 was priced to yield 3.19% with a 5% coupon and 3.76% with a 3.625% coupon in a split maturity. A term bond in 2046 was priced to yield 3.65% with a 4% coupon.

The deal is rated Aa1 by Moody’s and AA-plus by S&P.

Siebert Cisneros Shank is expected to price the Oakland Unified School District, Calif.’s $297.38 million of general obligation refunding bonds.

The deal is rated Aa3 by Moody’s, AA-minus by S&P Global Ratings and AAA by Fitch.

Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $4.41 billion to $11.89 billion on Thursday. The total is comprised of $3.98 billion of competitive sales and $7.91 billion of negotiated deals.

Tax-exempt money market fund inflows
Tax-exempt money market funds experienced inflows of $1.17 billion, bringing total net assets to $129.72 billion in the week ended May 8, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an inflow of $62.3 million to $128.56 billion in the previous week.

The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds decreased to 0.37% from 0.41% from the previous week.

The total net assets of the 856 weekly reporting taxable money funds decreased $5.24 billion to $2.490 trillion in the week ended May 9, after an inflow of $9.50 billion to $2.496 trillion the week before.

The average, seven-day simple yield for the taxable money funds increased to 0.44% from 0.43% in the prior week.

Overall, the combined total net assets of the 1,088 weekly reporting money funds decreased $4.07 billion to $2.620 trillion in the week ended May 9, after inflows of $9.26 billion to $2.624 trillion in the prior week.

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