The action in the primary market is set to slow after an action packed day on Wednesday that featured six deals greater than $100 million. With most of the week’s issuance priced, only one notable sale remains this week.
U.S. Treasuries were unchanged on Thursday morning. The yield on the two-year Treasury held at 1.27% on Wednesday, while the 10-year Treasury yield was flat from 2.31%, and the yield on the 30-year Treasury bond was steady at 2.97%.
The yield on the 10-year benchmark muni general obligation was unchanged on Wednesday at 2.13% from Tuesday, while the 30-year GO yield gained one basis point to 3.01% from 3.00%, according to a final read of Municipal Market Data's triple-A scale.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 92.2%, compared with 91.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 101.3%, versus 100.6%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 45,464 trades on Wednesday on volume of $13.78 billion.
After a busy day on Wednesday, the market on Thursday only has one scheduled deal larger than $100 million.
Wells Fargo is expected to price the Minnesota Higher Education Facilities Authority’s $123.06 million of revenue and refunding bonds for Carleton College.
The deal is expected to mature serially from 2018 through 2037 and feature term bonds in 2040, 2045 and 2047. The deal is rated Aa2 by Moody’s Investors Service.
Since 2007, the Minnesota HEFA has sold about $1.09 billion of securities, with the most issuance occurring last year when it issued $174 million. The authority has issued less than $100 million five times over the past 10 years, with a low of $6.7 million in 2014.
Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $1.29 billion to $10.38 billion on Thursday. The total is comprised of $3.19 billion of competitive sales and $7.19 billion of negotiated deals.
Tax-exempt money market fund outflows
Tax-exempt money market funds experienced outflows of $651.5 million, bringing total net assets to $128.50 billion in the week ended April 24, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $1.19 million to $129.15 billion in the previous week.
The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds increased to 0.42% from 0.39% the previous week.
The total net assets of the 859 weekly reporting taxable money funds increased $10.51 billion to $2.486 trillion in the week ended April 25, after an outflow of $9.59 billion to $2.476 trillion the week before.
The average, seven-day simple yield for the taxable money funds was unchanged at 0.42% from the prior week.
Overall, the combined total net assets of the 1,091 weekly reporting money funds increased $9.85 billion to $2.615 trillion in the week ended April 25, after outflows of $10.78 billion to $2.605 trillion in the prior week.