Municipal bond traders are set for the last big supply of the week to hit the market on Thursday.
U.S. Treasuries were mixed on Thursday. The yield on the two-year Treasury was unchanged from 1.31% on Wednesday as the 10-year Treasury yield rose to 2.19% from 2.18% while the yield on the 30-year Treasury bond was steady from 2.84%.
Top-rated municipal bonds finished flat on Wednesday. The yield on the 10-year benchmark muni general obligation was unchanged from 1.83% on Tuesday, while the 30-year GO yield was steady from 2.66%, according to the final read of Municipal Market Data's triple-A scale.
On Wednesday the 10-year muni to Treasury ratio was calculated at 84.0%, compared with 85.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 93.8% versus 94.8%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,928 trades on Wednesday on volume of $13.86 billion.
Wells Fargo Securities is set to price the city of St. Louis, Mo.’s $263.25 million of airport refunding and revenue bonds for the St. Louis Lambert International Airport.
The deal, which is expected to be insured by Assured Guaranty Municipal, is rated A2 by Moody’s Investors Service and AA by S&P Global Ratings with underlying ratings of A3 and A-minus.
Fifth Third Securities is expected to price New Hanover County, N.C.’s $213.76 million of Series 2017 hospital revenue bonds for the New Hanover Regional Medical Center.
The deal is rated A1 by Moody’s and A-plus by S&P.
In the short-tern sector, JPMorgan is set to price Riverside County, Calif.’s $340 million of 2017 tax and revenue anticipation notes.
In the competitive arena, the Clark County School District, Nev., is selling $473.88 million of bonds in two separate sales.
The deals consist of $412.31 million of Series 2017A limited tax general obligation building and refunding bonds and $61.57 million of Series 2017B limited tax GO refunding bonds additionally secured by pledged revenues.
The deals are rated A1 by Moody’s and AA-minus by S&P.
Since 2007, the Clark County School District has issued over $4 billion of debt with the most issuance occurring in 2007 when it sold $1.12 billion of bonds. The school district sold the least amount of securities in 2011 when it issued 98.6 million.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $1.25 billion to $7.27 billion on Thursday. The total is comprised of $3.78 billion of competitive sales and $3.50 billion of negotiated deals.
Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $1.1 billion, bringing total net assets to $130.44 billion in the week ended June 5, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $347.4 million to $129.33 billion in the previous week.
The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds dropped to 0.31% from 0.32% in the previous week.
The total net assets of the 851 weekly reporting taxable money funds increased $3.51 billion to $2.501 trillion in the week ended June 6, after an inflow of $8.66 billion to $2.498 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.47% from 0.46% in the prior week.
Overall, the combined total net assets of the 1,083 weekly reporting money funds increased $4.61 billion to $2.632 trillion in the week ended June 6, after inflows of $8.31 billion to $2.627 trillion in the prior week.