Municipal bond traders are seeing more supply head their way on Wednesday, led by a negotiated offering from an issuer in the Nutmeg State.
Secondary Market
U.S. Treasuries were mixed on Wednesday. The yield on the two-year was unchanged from 0.83% on Tuesday, the 10-year Treasury declined to 1.81% from 1.82% and the yield on the 30-year Treasury bond increased to 2.58% from 2.57%.
Top-shelf municipal bonds ended mixed on Tuesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.74% from 1.73% on Monday, while the yield on the 30-year was unchanged from 2.56%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 95.6% on Tuesday compared to 94.5% on Monday, while the 30-year muni to Treasury ratio stood at 99.6% versus 99.0%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,983 trades on Tuesday on volume of $9.77 billion.
Primary Market
More deals are on the way on Wednesday, as RBC Capital Markets gets set to price the Connecticut Housing Finance Authority's $170.34 million of housing mortgage finance program bonds in five series.
The deal is rated triple-A by Moody's Investors Service and S&P Global Ratings.
Since 2006, the CHFA has sold about $6.6 billion of securities, with the largest issuance coming in 2008 when the authority sold $905 million of debt. The CHFA's lowest issuance was in 2013, when it sold just $232 million. Wednesday's sale puts the authority over $700 million for the year, the highest yearly total since 2012.
Raymond James & Associates is set to price the Virginia Resource Authority's $129.94 million of pooled finance program bonds. The deal is rated triple-A by Moody's and S&P.
Bank of America Merrill Lynch is expected to price the South Carolina Jobs-Economic Development Authority's $101 million of Series 2016 hospital refunding revenue bonds for the Anmed Health project. The deal is rated A-plus by S&P and Fitch Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $3.57 billion to $9.62 billion on Wednesday. The total is comprised of $2.44 billion of competitive sales and $7.18 billion of negotiated deals.
