Municipal bond traders will be waiting to see some supply hit the screens on Thursday, a day after the primary market was sidelined by the Federal Reserve’s monetary policy meeting.

Secondary market
Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 1.36% from 1.34% on Wednesday, the 10-year Treasury yield gained to 2.16% from 2.14% while the yield on the 30-year Treasury bond increased to 2.79% from 2.78%.

Municipal bonds finished stronger on Wednesday. The yield on the 10-year benchmark muni general obligation fell four basis points to 1.84% from 1.88% on Tuesday, while the 30-year GO yield dropped four basis points to 2.69% from 2.73%, 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 86.1%, compared with 85.2% on Tuesday, while the 30-year muni to Treasury ratio stood at 96.7% versus 95.4%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,426 trades on Wednesday on volume of $11.44 billion.

Primary market
On Thursday, Morgan Stanley is expected to price the state of Mississippi’s $449.86 million of Series 2017A general obligation bonds.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.

Since 2007, Mississippi has sold about $5.87 billion of securities with the most issuance occurring in 2015 when it sold $1.21 billion.

The Magnolia State saw a low year of issuance in 2014 when it sold just $7 million. With Thursday’s sale, the state surpasses last year’s total.

Bank of America Merrill Lynch is expected to price the Hawaiian Electric Co. and its subsidiaries’ $265 million of special purpose revenue refunding bonds via the Department of Budget and Finance of the state of Hawaii.

The deal is rated Baa2 by Moody’s and A-minus by Fitch.

Citigroup is set to price the city of Long Beach, Calif.’s $172 million of harbor revenue bonds. The deal is rated AA by S&P and Fitch.

Also on Thursday, Goldman Sachs may price the Wisconsin Public Finance Authority’s $1.1 billion of revenue bonds for the American Dream development project in East Rutherford, N.J., but it is possible the deal may come early next week.

The issue consists of $800 million of limited obligation PILOT revenue bonds and $300 million of limited obligation grant revenue bonds. The deal is not rated.

In the competitive arena on Thursday, the Rock Hill School District No. 3 of York County, S.C., is selling $100 million of Series 2017B GOs.

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

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $230.9 million to $13.11 billion on Thursday. The total is comprised of $5.70 billion of competitive sales and $7.41 billion of negotiated deals.

Tax-exempt money market funds see outflows
Tax-exempt money market funds experienced outflows of $764.1 million, bringing total net assets to $129.67 billion in the week ended June 12, according to The Money Fund Report, a service of This followed an inflow of $1.1 million to $130.44 billion in the previous week.

The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds declined to 0.30% from 0.31% in the previous week.

The total net assets of the 851 weekly reporting taxable money funds decreased $5.24 billion to $2.496 trillion in the week ended June 13, after an inflow of $3.51 billion to $2.501 trillion the week before.

The average, seven-day simple yield for the taxable money funds increased to 0.49% from 0.47% in the prior week.

Overall, the combined total net assets of the 1,083 weekly reporting money funds decreased $6.01 billion to $2.626 trillion in the week ended June 13, after inflows of $4.61 billion to $2.632 trillion in the prior week.

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