Municipal bond traders are set to see the last of the week's big new issues come to market on Thursday.
Secondary Market
Treasuries were stronger on Thursday. The yield on the two-year Treasury slipped to 0.66% from 0.67% on Wednesday, the 10-year Treasury yield fell to 1.51% from 1.55% and the yield on the 30-year Treasury bond decreased to 2.26% from 2.29%.
Top quality municipal bonds finished steady on Wednesday. The yield on the 10-year benchmark muni general obligation was flat from 1.45% on Tuesday, while the yield on the 30-year muni was unchanged from 2.17%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 94.2% on Wednesday compared to 94.3% on Tuesday, while the 30-year muni to Treasury ratio stood at 94.7% versus 94.9%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 39,117 trades on Wednesday on volume of $13.77 billion.
Primary Market
The market is ready for the third straight day of new issuance.
Citigroup is expected to price Guam's $245 million of Series 2016A limited obligation Section 30 bonds. The deal is rated BBB-plus by S&P Global Ratings.
Since 2007, the Government of Guam has issued $1.74 billion of securities, with the largest issuance coming in 2009 when it sold $474 million. With the sale on Thursday, it will be the first time Guam has issued in consecutive years since 2011.
Ramirez & Co. is set to price the Austin Independent School District, Texas' $284.09 million of Series A and B unlimited tax refunding bonds.
Siebert Brandford Shank & Co. is expected to price the Oakland Unified School District, Calif.'s $265 million of Election of 2006 general obligation bonds and Series 2016A GO refunding bonds. The deal is nrated Aa2 by Moody's Investors Service, AA-minus by S&P and triple-A by Fitch Ratings.
Stifel is set to price the Los Angeles County Refunding Authority, Calif.'s $248.69 million of Series 2016A taxable tax allocation revenue refunding bonds. The deal is rated AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $3.12 billion to $10.41 billion on Thursday. The total is comprised of $3.28 billion of competitive sales and $7.12 billion of negotiated deals.
Tax-Exempt Money Market Fund Outflows
Tax-exempt money market funds experienced outflows of $1.76 billion, bringing total net assets to $184.16 billion in the week ended Aug. 1, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $2.49 million to $185.92 billion in the previous week.
The average, seven-day simple yield for the 271 weekly reporting tax-exempt funds was increased to 0.08% from 0.07% the previous week.
The total net assets of the 890 weekly reporting taxable money funds increased $14.64 billion to $2.534 trillion in the week ended Aug. 2, after an inflow of $17.31 billion to $2.520 trillion the prior before.
The average, seven-day simple yield for the taxable money funds remained at 0.11% from the week before.
Overall, the combined total net assets of the 1,161 weekly reporting money funds increased $12.88 billion to $2.718 trillion in the period ended Aug. 2, which followed an inflow of $14.82 billion to $2.706 trillion.
