The municipal bond market on Wednesday was revving up and getting into gear for the start of the week’s new issuance calendar.
Secondary Trading
Treasury prices were lower on Wednesday, with the yield on the two-year Treasury note rising to 0.76% from 0.74% on Tuesday, while the 10-year yield gained to 2.25% from 2.19% and the 30-year yield increased to 3.02% from 2.97%.
The yield on the 10-year benchmark muni general obligation closed two basis points stronger at 2.20% from 2.18% on Friday, while the yield on the 30-year GO was three basis points stronger at 3.14% from 3.11%, 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 100.5% versus 102.6% on Friday, while the 30-year muni to Treasury ratio stood at 105.7% compared to 107.6%, according to MMD.
Primary Market
In the competitive arena, the University of Washington is selling two separate issues totaling almost $193 million on Wednesday.
The sales consist of $155.84 million of Series 2015C general revenue and refunding bonds and $36.79 million of Series 2015D taxable general revenue and refunding bonds. The issues are rated triple-A by Moody's and AA-plus by S&P.
Since 1995, the University of Washington has issued roughly $2.15 billion of bonds. The years of 2011 and 2012 saw the most issuance with $211 million and $567 million, respectively. The Huskies did not come to market at all in 1997 through 1999, 2001, 2003, 2006 or 2014.
In the competitive short-term market, the New York Metropolitan Transportation Authority will sell $500 million of Series 2015A dedicated tax fund bond anticipation notes. The BANs are rated SP1-plus by S&P and F1-plus by Fitch.
In the negotiated sector, Jefferies is scheduled to price Austin, Texas' $307 million of public improvement bonds, public property finance contractual obligations, and certificates of obligation. The issue is rated triple-A by Moody's Investors Service, Standard & Poor’s and Fitch Ratings.
JPMorgan Securities is expected to price the Allina Health System's $250 million of Series 2015 taxable bonds. The issue is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
On Thursday, Barclays Capital is expected to price the biggest deal of the week -- North Texas Tollway Authority System's $750 million of Series 2015B first-tier revenue refunding bonds. The bonds are rated A1 by Moody's and A by S&P.
Also on Thursday, RBC Capital Markets is slated to price the University of Oklahoma's $245 million of general revenue bonds consisting of Series 2015C tax-exempts and Series 2015D taxables. The issue is rated A-plus by S&P and AA-minus by Fitch.
In the negotiated short-term market, JPMorgan Securities is set to price the Detroit School District’s $121 million of Series 2015E junior subordinate lien obligations on Thursday. The state aid revenue notes are being issued through the Michigan Finance Authority. They are rated SP3 by S&P.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,227 trades on Tuesday on volume of $3.860 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $323.2 million to $8.22 billion on Wednesday. The total is comprised of $2.94 billion competitive sales and $5.29 billion of negotiated deals.
