Municipal bond traders are set for some supply on Thursday – as the last few of the week's larger deals are set to trickle into the market.
Secondary Market
U.S. Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury was flat from 1.15% on Wednesday, while the 10-year Treasury was unchanged from 2.35%, and the yield on the 30-year Treasury bond increased to 2.99% from 2.96%.
Top-quality municipal bonds finished stronger on Wednesday. The 10-year benchmark muni general obligation yield fell three basis points to 2.25% from 2.28% on Tuesday, while the yield on the 30-year GO dropped three basis points to 3.03% from 3.06%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 95.9% on Wednesday compared to 95.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 102.4%, versus 101.4%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 42,207 trades on Wednesday on volume of $16.13 billion.
Primary Market
In the competitive arena, the South Broward Hospital District, Fla., is selling $115.18 million of Series 2017 hospital refunding revenue bonds for the South Broward Hospital District Obligated Group.
The deal is rated Aa3 by Moody's Investors Service and AA by S&P Global Ratings.
Since 2007, the district has sold about $1 billion of debt, with the most issuance occurring in 2016 when it sold $333.7 million of bonds in three separate sales. The hospital district did not come to market in 2010-2014.
In the negotiated sector, Barclays Capital is expected to price the Delaware County Authority's $94 million of Series 2017A revenue bonds for Haverford College. The deal is rated AA-minus by S&P and Fitch Ratings.
Late Wednesday, Citigroup priced Salt Lake City, Utah's $1 billion of airport revenue bonds for the Salt Lake City Airport.
The $826.22 million of Series 2017A bonds, subject to the alternative minimum tax, were priced as 5s to yield from 1.86% in 2021 to 3.66% in 2037, 3.73% in 2042 and 3.79% in 2077.
The $173.79 million of Series 2017B non-AMT bonds were priced as 5s to yield from 1.63% in 2021 to 3.39% in 2037, 3.44% in 2042 and 3.49% in 2047.
The deal is rated A2 by Moody's and A-plus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $3.38 billion to $6.49 billion on Thursday. The total is comprised of $2.28 billion of competitive sales and $4.22 billion of negotiated deals.
Tax-Exempt Money Market Fund Inflows
Tax-exempt money market funds experienced inflows of $1.30 billion, bringing total net assets to $131.81 billion in the week ended Feb. 6, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $797.0 million to $130.51 billion in the previous week.
The average, seven-day simple yield for the 233 weekly reporting tax-exempt funds dropped to 0.22% from 0.23% in the previous week.
The total net assets of the 863 weekly reporting taxable money funds decreased $6.54 billion to $2.512 trillion in the week ended Feb. 7, after an outflow of $4.04 billion to $2.519 trillion the week before.
The average, seven-day simple yield for the taxable money funds was unchanged from 0.27% in the prior week.
Overall, the combined total net assets of the 1,096 weekly reporting money funds fell $5.24 billion to $2.644 trillion in the week ended Feb. 7, after outflows of $4.84 billion to $2.650 trillion in the prior week.
