Municipal bond traders will be awaiting more new issues to be priced on Wednesday only a day after more than $2 billion of new supply came to market.
Secondary Market
Treasury prices were lower on Wednesday, with the yield on the two-year Treasury note rising to 0.69% from 0.67% on Tuesday, while the 10-year yield rose to 2.14% from 2.12% and the 30-year yield increased to 2.94% from 2.93%.
On Tuesday, prices of top-quality municipals finished stronger. The yield on the 10-year benchmark muni general obligation was three basis points weaker at 2.12% from 2.15% on Monday, while the yield on the 30-year GO was two basis points weaker at 3.11% from 3.13%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Tuesday at 99.8% versus 97.1% on Monday, while the 30-year muni to Treasury ratio stood at 106.1% compared to 103.2%, according to MMD.
Primary Market
Goldman Sachs is slated to price the Sacramento Public Financing Authority's $274 million of Series 2015 taxable lease revenue bonds for the Golden 1 Center on Wednesday. The bonds are rated A-plus by Standard & Poor's and A by Fitch Ratings.
Morgan Stanley is set to price the state of Mississippi's $200 million of Series 2015E gaming tax revenue bonds on Wednesday. The issue is rated A3 by Moody's Investors Service and A-plus by S&P and Fitch.
Raymond James is slated to price the Tennessee Housing Development Agency's $131.93 million on non-AMT residential finance program bonds on Wednesday. The bonds are rated Aa1 by Moody's and AA-plus by S&P.
On Thursday, Wells Fargo Securities is expected to price the second part of the San Francisco Bay Area Transit District's $358.56 million offering -- $170.93 million of general obligation refunding bonds, rated triple-A by Moody's and S&P.
On Tuesday Wells Fargo priced the $186.64 million of Series 2015A sales tax refunding bonds, rated AA-plus by S&P and Fitch.
Since 1995, BART has sold roughly $2.78 billion of debt. The years of 2005 and 2007 saw the most issuance with $452 million and $400 million, respectively. BART did not come to market at all in 1996-1997, 2000, 2002-2004 or 2008-2009.
On Tuesday, Citigroup priced Wayne County Airport Authority, Mich.'s $521.73 million of new money and refunding bonds. The issue was made up of $214.34 million of Series 2015D airport revenue non-alternative minimum tax bonds, $75.01 million of Series 2015G non-AMT airport revenue refunding bonds, $224.63 million of Series 2015F AMT airport revenue refunding bonds, and $7.76 million of Series 2015E AMT airport revenue bonds.
Ahead of the sale, WCAA officials had highlighted its legal separation from its struggling home county as the operator of Detroit's airport expected to save more than $3.5 million annually in debt service from the refunding piece of the deal. Part of the transaction restructured debt originally issued by the county into debt backed by general airport revenues. The authority said last week that it will save $1 million a year by wiping the county's pledge off the borrowing and replacing it with its own.
The bonds were rated A2 by Moody's, A by S&P and A-minus by Fitch except for three maturities which were insured by AGM and rated A2 by Moody's and AA by S&P. All three agencies maintain a stable outlook on the credit.
"Wayne County Airport Authority, Mich.'s finalized pricing of $521 million AMT and non-AMT bonds for Detroit's airport, with significant downward yield adjustments in final pricing indicating little taint for the airport authority from Detroit's fiscal woes," Janney Municipal Strategist Alan Schankel wrote in a Wednesday market comment.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 39,753 trades on Tuesday on volume of $8.304 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $1.75 billion to $7.02 billion on Wednesday. The total is comprised of $2.55 billion competitive sales and $4.46 billion of negotiated deals.
