The municipal bond market on Friday will be digesting the week's chunky new issue slate as traders' eyes turn toward next week's calendar.

"It looks like we will have some supply next week, but not as much as this week," said a New York trader. "The supply brought out buyers and better prices and I don't think much will change next week."

He added the new supply would not be a burden on the market.

"You still have people trying to wade through all of the politics," the trader said, "but right now the street is not heavy and that's a good thing."

Secondary Market

U.S. Treasuries were weaker on Friday. The yield on the two-year Treasury rose to 1.19% from 1.17% on Thursday, while the 10-year Treasury yield increased to 2.39% from 2.35%, and the yield on the 30-year Treasury bond gained to 2.99% from 2.95%.

Top-rated municipal bonds finished stronger on Thursday. The 10-year benchmark muni general obligation yield fell four basis points to 2.15% from 2.19% on Wednesday, while the yield on the 30-year GO dropped four basis points to 2.88% from 2.92%, according to the final read of Municipal Market Data's triple-A scale.

On Thursday, the 10-year muni to Treasury ratio was calculated at 91.2% compared to 92.5% on Wednesday, while the 30-year muni to Treasury ratio stood at 97.5%, versus 98.8%, according to MMD.

MSRB: Previous Session's Activity

The Municipal Securities Rulemaking Board reported 44,296 trades on Thursday on volume of $15.68 billion.

Week's Primary Market

Goldman Sachs priced the Triborough Bridge and Tunnel Authority's $1.2 billion bond sale. The deal for the N.Y. MTA's bridges and tunnels, consisted of $300 million of Series 2017A general revenue bonds and $903.39 million of Series 2017B general revenue refunding bonds. The deal is rated Aa3 by Moody's Investors Service, AA-minus by S&P Global Ratings and Fitch Ratings and AA by Kroll Bond Rating Agency.

Jefferies priced TSASC, Inc.'s $653.07 million of tobacco settlement senior and subordinate bonds. In conjunction with the sale, TSASC said it also placed $450 million of subordinate turbo term bonds with holders of existing TSASC bonds. The senior bonds carry ratings from S&P that range from A in 2017 to BBB-plus in 2041 while the subordinate bonds carry ratings from S&P that range from BBB-plus in 2018 to BBB in 2025.

Bank of America Merrill Lynch priced the New Jersey Economic Development Authority's $621.54 million of Series 2017 transportation project sublease revenue and revenue refunding bonds for New Jersey Transit Corp. project. The deal is rated A3 by Moody's, BBB-plus by S&P and A-minus by Fitch.

Morgan Stanley priced the Regents of the University of Michigan's $469.03 million of Series 2017A general revenue bonds. The deal is rated triple-A by Moody's and S&P.

Ramirez & Co. priced Wisconsin's $427 million of taxable Series 2017A general fund annual appropriation bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.

Citigroup priced the Board of Regents of the Texas A&M University System's $388.71 million of Series 2017A taxable revenue financing system bonds. The deal is rated triple-A by Moody's, S&P and Fitch.

Piper Jaffray priced the University of Connecticut's $345.15 million of general obligation bonds. The deal is rated Aa3 by Moody's, AA-minus by S&P and A-plus by Fitch.

Goldman Sachs priced the Trinity Health Credit Group's $333.87 million composite bond offering from four conduit issuers in states with Trinity facilities, consisting of The Michigan Finance Authority's $162.06 million of Series 2017MI hospital revenue and refunding bonds; the Idaho Health Facilities Authority's $54.87 million of Series 2017ID hospital revenue bonds; the Maryland Health and Higher Educational Facilities Authority's $29.44 million of Series 2017MD revenue bonds and Franklin County, Ohio's $87.52 million of Series 2017OH bonds. The Trinity offering is rated Aa3 by Moody's and AA-minus by S&P and Fitch.

Loop Capital Markets priced the Chicago Transit Authority's $296.94 million of Series 2017 second lien sales tax receipts revenue bonds. The deal is rated A-plus by S&P and AA-minus by Kroll.

RBC priced the Pennsylvania Housing Finance Agency's $239.65 million of Series 2017-122 single-family mortgage revenue bonds, not subject to the alternative minimum tax. The deal is rated Aa2 by Moody's and AA-plus by S&P.

RBC Capital Markets priced $203.67 million Aurora Public Schools, Joint School District No. 28J in Adams and Arapahoe Counties, Colo., Series 2017A GOs and Series 2017B GOs. The deal, backed by the Colorado state intercept program, is rated Aa2 by Moody's and AA by Fitch.

BAML priced the Illinois Finance Authority's $197.49 million of Series 2017A revenue bonds for Edward-Elmhurst Healthcare. The deal is rated A by S&P and Fitch.

Barclays Capital priced the Miami University of Ohio's $154.97 million of Series 2017 general receipts revenue and refunding bonds. The deal is rated Aa3 by Moody's and AA by Fitch.

Raymond James priced the Klein Independent School District, Texas' $145.89 million of Series 2017 unlimited tax schoolhouse bonds. The deal, backed by the Permanent School Fund guarantee program, is rated triple-A by Moody's and S&P.

Barclays Capital priced the California Statewide Community Development Authority's $135 million of Series 2006 C&D pollution control refunding revenue bonds as a remarketing. The deal is rated Aa3 by Moody's, A by S&P and A-plus by Fitch.

BAML priced the Orange County Water District, Calif.'s $118.62 million of Series 2017A tax-exempt and Series 2017B taxable refunding revenue bonds. The deal is rated triple-A by S&P and Fitch.

Citigroup priced Rochester, Minn.'s $109.13 million of Series 2017A electric utility revenue and refunding bonds. The deal is rated Aa3 by Moody's and AA-minus by Fitch.

In the competitive arena, Washington state sold about $649.09 million of bonds in three separate offerings. Wells Fargo Securities won the $462.76 million of Series 2017D various purpose general obligation bonds with a true interest cost of 3.51%. Citigroup won the $137.1 million of Series R-2017C various purpose GO refunding bonds with a TIC of 1.92%. BAML won the $49.23 million of Series 2017E motor vehicle fuel tax GOs and Series R-2017D motor vehicle fuel tax refunding GOs with a TIC of 3.14%. All three deals are rated Aa1 by Moody's and AA-plus by S&P and Fitch.

Ohio competitively sold $350 million of bonds in two separate deals. Citigroup won the $300 million of Series 2017A common schools general obligation bonds with a TIC of 3.35%. Robert W. Baird won the $50 million of Series 2017A conservation projects GOs with a TIC of 2.96%. The deals are rated Aa1 by Moody's and AA-plus by S&P and Fitch.

The Highline School District No. 401, Wash., sold $212.69 million of Series 2017 unlimited tax general obligation bonds. BAML won the bonds with a TIC of 3.29%.The deal, backed by the Washington state credit enhancement program, is rated Aa1 by Moody's and AA-plus by S&P.

Seattle, Wash., competitively sold $189.67 million of Series 2017 water system improvement and refunding revenue bonds. Citigroup won the bonds with a TIC of 3.28%.The deal is rated Aa1 by Moody's and AA-plus by S&P.

The Alpine School District Board of Education, Utah, competitively sold $150.43 million of Series 2017 GO school building and refunding bonds under the Utah school bond guaranty program. Citi won the bonds with a TIC of 2.61%. The deal is rated triple-A by Moody's and Fitch.

Hennepin County, Minn., competitively sold $116.89 million of Series 2017A first lien sales tax revenue refunding bonds. BAML won the bonds with a TIC of 2.80%. The deal is rated triple-A by S&P and Fitch.

Bond Buyer Visible Supply

The Bond Buyer's 30-day visible supply calendar decreased $854.8 million to $13.70 billion on Friday. The total is comprised of $3.04 billion of competitive sales and $10.66 billion of negotiated deals.

Lipper: Muni Bond Funds Report Inflows

Municipal bond funds saw inflows for the first time in eight weeks as investors returned to the market, according to Lipper data released late Thursday. The weekly reporters saw $974.172 million of inflows in the week ended Jan. 11, after outflows of $911.938 million in the previous week.

The four-week moving average remained in the red at negative $890.596 million after being negative $1.632 million in the previous week. A moving average is an analytical tool used to smooth out price changes by filtering out fluctuations.

Long-term muni bond funds also had inflows, gaining $982.916 million in the latest week after losing $226.857 million in the previous week. Intermediate-term funds had inflows of $61.462 million after outflows of $636.984 million in the prior week.

National funds had inflows of $933.337 million after outflows of $613.824 million in the previous week. High-yield muni funds reported inflows of $796.091 million in the latest reporting week, after outflows of $244.713 million the previous week.

Exchange traded funds saw inflows of $183.828 million, after inflows of $607.714 million in the previous week.

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