Municipal bond traders were looking back at the deals that came to market in the holiday-shortened week and looking ahead to next week's robust slate of new issues.
Volume for next week is estimated by Ipreo at $6.8 billion, consisting of $4.4 billion of negotiated deals and $2.4 billion of competitive sales.
Secondary Market
Treasuries were mixed on Friday. The yield on the two-year Treasury rose to 0.75% from 0.71% on Thursday, while the 10-year Treasury yield rose to 1.77% from 1.76% and the 30-year Treasury bond yield was flat at 2.63%.
Top-rated municipal bonds ended steady on Thursday. The yield on the 10-year benchmark muni general obligation was unchanged from 1.66% on Wednesday, while the 30-year muni yield was flat at 2.78%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Thursday at 94.3% compared to 91.4% on Wednesday, while the 30-year muni to Treasury ratio stood at 105.7% versus 103.4%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 40,619 trades on Thursday on volume of $9.74 billion.
Primary Market
Ramirez & Co. priced the New York Metropolitan Transportation Authority's $721.09 million of Series 2016-A1 transportation revenue green bonds and Series 2016-A2 transportation revenue refunding green bonds. The deal is rated A1 by Moody's Investors Service, AA-minus by Standard & Poor's, A by Fitch Ratings and AA-plus by Kroll Bond Rating Agency.
Bank of America Merrill Lynch priced the Florida Municipal Power Agency's $421.99 million of refunding revenue bonds. The deal is rated A2 by Moody's and A-plus by Fitch.
Wells Fargo Securities priced the Missouri Health and Educational Facilities Authority's $402.92 million of taxable educational facilities revenue bonds for Washington University. The deal is rated triple-A by Moody's and S&P.
JPMorgan Securities priced the Oregon Health and Science University's $196.23 million of Series 2016B revenue bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Jefferies priced the Maryland Health & Higher Educational Facilities Authority's $136.31 million of Series 2016A revenue bonds for the Mercy Medical Center. The deal is rated Baa2 by Moody's and triple-B by S&P.
Piper Jaffray priced the Alvin Independent School District, Texas' $129.55 million of 2016 unlimited tax schoolhouse and refunding GOs. The deal is rated triple-A by Moody's and Fitch and is backed by the Permanent School Fund guarantee program.
Estrada Hinojosa & Co. priced the Pharr-San Juan-Alamo Independent School District, Texas' $107.79 million of Series 2016 unlimited tax refunding bonds. The deal is backed by the PSF and is rated triple-A by Moody's and S&P.
Wells Fargo priced Raleigh, N.C.'s $101.85 million of Series 2016A GO refunding bonds. The issue is rated triple-A by Moody's, S&P and Fitch.
In the competitive arena, Nevada sold $290.79 million of Series 2016 highway revenue motor vehicle fuel tax improvement and refunding bonds. Wells Fargo won the deal with a true interest cost of 2.19%. The bonds are rated Aa2 by Moody's, AAA by S&P and AA-plus by Fitch.
The Los Angeles County Metropolitan Transportation Authority sold $185.61 million of Series 2016A Proposition A first tier senior sales tax revenue refunding bonds. JPMorgan won the issue with a TIC of 1.64%. The deal is rated Aa1 by Moody's and AAA by S&P.
The Massachusetts State College Building Authority competitively sold $178.29 million of Series 2016A refunding revenue bonds. Bank of America Merrill Lynch won the bonds with a TIC of 3.18%. The deal is rated Aa2 by Moody's and AA by S&P.
Frisco Independent School District, Texas, competitively sold $110.25 million of Series 2016 unlimited tax refunding bonds. Bank of America Merrill Lynch won the issue with a TIC of 2.98%. The deal is backed by the PSF and is rated triple-A by Moody's and S&P.
York County, S.C., sold $108.97 million of general obligation bonds of 2016. Citigroup won the issue with a TIC of 2.22%. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $1.44 billion to $10.16 billion on Friday. The total is comprised of $2.82 billion of competitive sales and $7.33 billion of negotiated deals.
Municipal Bond Funds See Inflows for 20th Week
Municipal bond funds reported inflows for the 20th straight week, according to Lipper data released on Thursday.
Weekly reporting funds saw $668.964 million of inflows in the week ended Feb. 17, after inflows of $940.697 million in the previous week, Lipper said.
So far this year, muni mutual funds have seen about $5.40 billion of inflows.
The four-week moving average remained positive at $719.442 million after being in the green at $684.623 million in the previous week. A moving average is an analytical tool used to smooth out price changes by filtering out fluctuations.
Long-term muni bond funds also experienced inflows, gaining $460.258 million in the latest week after inflows of $746.051 million in the previous week. Intermediate-term funds had inflows of $191.155 million after inflows of $331.761 million in the prior week.
National funds saw inflows of $575.066 million after inflows of $770.988 million in the prior week. High-yield muni funds reported inflows of $99.768 million in the latest reporting week, after inflows of $284.065 million the previous week.
Exchange traded funds saw inflows of $90.824 million, after inflows of $124.647 million in the previous week.
The Week's Most Actively Quoted Issues
California and Ohio were among some of the most actively quoted names in the week ended Feb. 12, according to data released by Markit.
On the bid side, the California taxable 7.5s of 2034 were quoted by 11 unique dealers. On the ask side, the Ohio hospital revenue 4s of 2046 were quoted by 18 unique dealers. And among two-sided quotes, the California taxable 7.55s of 2039 were quoted by 12 dealers.
The Week's Most Actively Traded Issues
Some of the most actively traded issues by type in the week ended Feb. 12 were in Texas, New York and California, according to Markit.
In the GO bond sector, the Dallas Independent School District, Texas, 3s of 2036 traded 30 times. In the revenue bond sector, the New York City Transitional Finance Authority 4s of 2041 traded 66 times. And in the taxable bond sector, the California 7.55s of 2039 traded 19 times, Markit said.
