Municipal bond traders were set to see the first of the week's new issue supply hit the market, led off by the retail pricing of a New York transit deal.
Munis were weaker on Wednesday morning, as yields on some maturities were up to three basis points higher, according to traders.
Secondary Market
Top-rated municipal bonds were weaker on Wednesday morning. The yield on the 10-year benchmark muni general obligation was up to three basis points higher from 1.62% on Tuesday, while the 30-year muni yield was also as much as three basis points higher from 2.72%, according to a morning read of Municipal Market Data's triple-A scale.
Treasuries were weaker on Wednesday morning. The yield on the two-year Treasury rose to 0.75% from 0.72% on Tuesday, while the 10-year Treasury yield jumped to 1.81% from 1.78% and the 30-year Treasury bond yield increased to 2.67% from 2.65%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 91.2% compared to 91.7% on Friday, while the 30-year muni to Treasury ratio stood at 103.0% versus 103.0%, according to MMD.
Primary Market
Ramirez & Co. is set to price the New York Metropolitan Transportation Authority's $500 million of revenue green bonds for retail investors on Wednesday. The deal, which will be priced for institutions on Thursday, is rated A1 by Moody's Investors Service, AA-minus by Standard and Poor's, A by Fitch Ratings and AA-plus by Kroll Bond Rating Agency.
Bank of America Merrill Lynch is slated to price the Florida Municipal Power Agency's $425 million of All-Requirements Power Supply projects refunding revenue bonds on Wednesday. The deal is rated A2 by Moody's and A-plus by Fitch.
JPMorgan Securities is set to price the Oregon Health & Science University's $200 million of Series 2016B revenue bonds on Wednesday. The deal is rated Aa2 by Moody's and AA-minus by S&P and Fitch.
Jefferies is expected to price the Maryland Health & Higher Educational Facilities Authority's $141.18 million of Series 2016A revenue bonds for the Mercy Medical Center. The bonds are rated Baa2 by Moody's and triple-B by S&P.
Piper Jaffray is set to price the Alvin Independent School District, Texas' $127.5 million of 2016 unlimited tax schoolhouse and refunding GOs on Wednesday. The bonds are rated triple-A by Moody's.
The largest competitive sale of the week will come from the Silver State, as Nevada is set to sell $290.79 million of Series 2016 highway revenue motor vehicle fuel tax improvement and refunding bonds on Wednesday. The bonds are rated Aa2 by Moody's, triple-A by S&P and AA-plus by Fitch.
Since 2006, Nevada has issued bonds an average of 5.5 times a year, selling about $4 billion in total, with the largest issuances seen in 2013 and 2015 when it offered $1 billion and $632 million, respectively, and the lows in 2009 and 2011, when it issued $131 million and $149 million, respectively.
The Massachusetts State College Building Authority is competitively selling $182.49 million of Series 2016A refunding revenue bonds on Wednesday. The bonds are rated Aa2 by Moody's and AA by S&P.
York County, S.C., will competitively sell on Wednesday $108.97 million of general obligation bonds of 2016. The deal is rated Aa1 by Moody's and AA-plus by S&P.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,002 trades on Tuesday on volume of $6.449 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $900.7 million to $8.83 billion on Wednesday. The total is comprised of $3.27 billion of competitive sales and $5.56 billion of negotiated deals.
