Municipal bond traders will be looking at declining yields as more volume is slated to hit the market on Wednesday.
Secondary Market
U.S. Treasuries were stronger on Wednesday. The yield on the two-year dipped to 1.25% from 1.26% on Tuesday, while the 10-year Treasury yield declined to 2.40% from 2.43%, and the yield on the 30-year Treasury bond decreased to 3.02% from 3.04%.
Top-quality municipal bonds finished stronger on Tuesday. The yield on the 10-year benchmark muni general obligation fell five basis points to 2.33% from 2.38% on Monday, while the 30-year GO yield dropped three basis points to 3.13% from 3.16%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 95.8%, compared with 96.3% on Monday, while the 30-year muni to Treasury ratio stood at 102.6%, versus 102.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 42,580 trades on Tuesday on volume of $11.46 billion.
Primary Market
On Wednesday, Goldman Sachs is expected to price the Oregon Department of Administration Services' $239.32 million of tax-exempt and taxable state lottery revenue bonds.
The deal is rated Aa2 by Moody's Investors Service and AAA by S&P Global Ratings.
Since 2007, the Beaver State has sold over $5 billion of bonds, with the most issuance prior to this year occurring in 2013 when it offered almost $712 million of debt. It sold the least amount of securities in 2010: around $146 million.
Bank of America Merrill Lynch is set to price the North Carolina Turnpike Authority's $230 million of Series 2017 senior lien turnpike revenue refunding bonds for the Triangle Expressway System.
The deal is rated BBB by S&P and BBB-minus by Fitch Ratings.
Piper Jaffray is expected to price the Palomar Community College District, Calif.'s $139 million of Series 2017D general obligation bonds. The deal is rated Aa1 by Moody's and AA by S&P.
In the competitive arena, Louisiana is selling $189.12 million of Series 2017A general obligation bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
The New Jersey Educational Facilities Authority is selling $128.32 million of Series 2017C revenue bonds for Princeton University. The deal is rated triple-A by Moody's and S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $332.7 million to $9.66 billion on Wednesday. The total is comprised of $3.63 billion of competitive sales and $6.03 billion of negotiated deals.
