The municipal bond market was expected to remain quiet on Thursday, with only a few smaller-sized bond sales set to be priced in the primary, and action in the secondary expected to remain muted.
Treasuries were mixed on Thursday. The yield on the two-year Treasury was flat from 1.41% on Wednesday, the 10-year Treasury yield rose to 2.37% from 2.33% and the yield on the 30-year Treasury bond increased to 2.90% from 2.85%.
Top-quality municipal bonds finished mixed on Wednesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 2.02% from 2.01% on Monday, while the 30-year GO yield was unchanged from 2.80%, 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 86.6%, compared with 85.8% on Monday, while the 30-year muni to Treasury ratio stood at 98.1% versus 97.8%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 47,754 trades on Wednesday on volume of $8.12 billion.
In the negotiated sector on Thursday, Citigroup is set to price the biggest deal of the week — Denton, Texas’ $77 million of Series 2017 permanent improvement refunding bonds.
The deal is rated triple-A by Moody’s Investors Service and S&P Global Ratings.
In the competitive arena on Thursday, Stamford, Conn., is selling $30 million of general obligation bonds in two separate sales.
The offerings consist of $25 million of Issue of 2017 Series A GOs and $5 million of Issue of 2017 Series B GOs.
The deals are rated AAA by S&P and Fitch Ratings.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $386.7 million to $7.10 billion on Thursday. The total is comprised of $2.61 billion of competitive sales and $4.49 billion of negotiated deals.
Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $645.7 million, bringing total net assets to $129.81 billion in the week ended July 3, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an outflow of $549.1 million to $129.16 billion in the previous week.
The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds jumped to 0.43% from 0.39% in the previous week.
The total net assets of the 852 weekly reporting taxable money funds decreased $1.17 billion to $2.466 trillion in the week ended July 4, after an inflow of $10.56 billion to $2.467 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.62% from 0.60% in the prior week.
Overall, the combined total net assets of the 1,084 weekly reporting money funds decreased $520.9 million to $2.595 trillion in the week ended July 4, after inflows of $10.01 billion to $2.596 trillion in the prior week.