Municipal bond traders are awaiting the last of this holiday-shortened week's supply to come to market on Thursday. Most of the big sales hit the screens on Wednesday but there are still a few sales of size left on the calendar.
Secondary Market
U.S. Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury was unchanged from 0.89% on Wednesday, while the 10-year Treasury yield dipped to 1.83% from 1.84% and the yield on the 30-year Treasury bond decreased to 2.60% from 2.62%.
Top-rated munis finished flat on Wednesday. The yield on 10-year benchmark muni general obligation on Tuesday was unchanged from 1.66% on Thursday, while the 30-year muni yield was flat at 2.45%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 90.1% on Wednesday compared to 90.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 93.4% versus 93.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,875 trades on Wednesday on volume of $10.96 billion.
Primary Market
On Thursday, Citigroup is scheduled to price El Paso, Texas' $251 million of GO and combination tax and revenue bonds. The deal is rated AA by S&P Global Markets and Fitch Ratings.
Citi is also expected to price the Board of Trustees of Oakland University, Mich.'s $112 million of general revenue bonds on Thursday. The deal is rated A1 by Moody's Investors Service.
Barclays Capital is set to price the Sacramento Municipal Utility District, Calif.'s $149.48 million of Series 2016D tax-exempt electric revenue refunding bonds on Thursday. The deal is rated Aa2 by Moody's and AA-minus by S&P and Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $289.6 million to $11.96 billion on Thursday. The total is comprised of $7.38 billion of competitive sales and $4.57 billion of negotiated deals.
Tax-Exempt Money Market Funds See Outflows
Tax-exempt money market funds experienced outflows of $2.45 billion, bringing total net assets to $208.95 billion in the week ended May 30, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $987.8 million to $211.40 billion in the previous week.
The average, seven-day simple yield for the 296 weekly reporting tax-exempt funds was unchanged at 0.06%.
The total net assets of the 888 weekly reporting taxable money funds decreased $14.69 billion to $2.488 trillion in the week ended May 31, after an inflow of $25.30 billion to $2.503 trillion the week before.
The average, seven-day simple yield for the taxable money funds was 0.11%, up from 0.10% in the prior week.
Overall, the combined total net assets of the 1,184 weekly reporting money funds decreased $17.14 billion to $2.697 trillion in the period ended May 31, which followed an inflow of $24.31 billion to $2.714 trillion.
