Municipal bond traders are set to see another wave of issuance hit the market on Wednesday, led by issuers in California and Utah.
Secondary Market
U.S. Treasuries were stronger on Wednesday. The yield on the two-year Treasury declined to 1.15% from 1.17% on Tuesday, while the 10-year Treasury dropped to 2.36% from 2.39%, and the yield on the 30-year Treasury bond decreased to 2.99% from 3.02%.
Top-rated municipal bonds ended stronger on Tuesday. The 10-year benchmark muni general obligation yield fell two basis points to 2.28% from 2.30% on Monday, while the yield on the 30-year GO dropped two basis points to 3.06% from 3.08%, 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 95.5% compared to 95.4% on Monday, while the 30-year muni to Treasury ratio stood at 101.4%, versus 101.1%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 43,994 trades on Tuesday on volume of $9.50 billion.
Primary Market
Goldman Sachs is set to price the Trustees of California State University's $827.95 million of Series 2017A tax-exempt systemwide revenue bonds for institutions on Wednesday after a one-day retail order period.
The issue was priced for retail to yield from 0.85% with a 3% coupon in 2017 to 3.33% with a 5% coupon in 2047. No retail orders were taken in the 2033-2036, 2038-2041 or 2043-2046 maturities.
The deal is rated Aa2 by Moody's Investors Service and AA-minus by S&P Global Ratings.
On Wednesday, Citigroup is expected to price the Salt Lake Department of Airports' $952 million of airport revenue bonds, consisting of Series 2017A bonds subject to the alternative minimum tax and Series 2017B non-AMT bonds.
The deal is rated A2 by Moody's and A-plus by S&P.
Citi is also expected to price the state of Oregon's $491 million of tax-exempt and taxable GOs for state seismic and energy projects.
The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch Ratings.
In the competitive sector on Wednesday, the Fairfax County Water Authority, Va., is selling $198.58 million of Series 2017 water revenue and refunding revenue bonds.
The deal is rated triple-A by Moody's, S&P and Fitch.
The state of Washington is competitively selling $103.41 million of Series 2017A state and local agency real and personal property certificates of participation on Wednesday. The deal is rated Aa2 by Moody's.
In the short-term competitive sector, the New York Metropolitan Transportation Authority is set to sell $700 million of notes in two separate sales on Wednesday.
The offerings consist of $500 million of Series 2017 Subseries 2017A-1 transportation revenue bond anticipation notes and $200 million of Series 2017 Subseries 2017B-1 transportation revenue bond anticipation notes.
The BANs are rated MIG1 by Moody's, SP1-plus by S&P and F1 by Fitch.
Since 2007, the N.Y. MTA has sold over $30.78 billion of bonds, with the most issuance occurring in 2012 when it sold $6.69 billion of debt and the least amount taking place in 2007 when it sold $1.27 billion of securities.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $900.9 million to $9.87 billion on Wednesday. The total is comprised of $2.09 billion of competitive sales and $7.78 billion of negotiated deals.
