Prices of top-shelf municipal bonds finished weaker on Thursday, according to traders, with yields on some maturities rising by as much as three basis points.
In the primary, traders saw the last of the week's new issues come to market.
Secondary Market
The yield on the 10-year benchmark muni general obligation was three basis points stronger at 2.04% from 2.01% on Wednesday, while the yield on the 30-year GO was three basis points stronger at 3.07% from 3.04%, according to the final read of Municipal Market Data's triple-A scale.
Treasury prices were lower on Thursday, with the yield on the two-year Treasury rising to 0.72% from 0.71% on Wednesday, while the 10-year yield rose to 2.17% from 2.10% and the 30-year yield increased to 2.96% from 2.87%.
The 10-year muni to Treasury ratio was calculated on Thursday at 93.8% versus 96.1% on Wednesday, while the 30-year muni to Treasury ratio stood at 103.5% compared to 106.0%, according to MMD.
Primary Market
In the negotiated sector, Raymond James priced the Broward County Airport Authority, Fla.'s $482.2 million of airport system revenue and revenue refunding bonds for the Fort Lauderdale International Airport.
The $426.32 million of Series 2015A revenue bonds, subject to the alternative minimum tax, were priced to yield from 0.50% with a 2% coupon in 2016 to 4.10% at par in 2037. A 2040 term bond was priced as 5s to yield 3.82% and a 2045 term was priced as 5s to yield 3.89%.
The $9.58 million of Series 2015B non-AMT revenue bonds were priced as 5s to yield 3.59% in 2045. The $46.31 million of Series 2015C AMT revenue refunding bonds were priced to yield from 0.45% with a 2% coupon in 2016 to 2.80% with a 5% coupon in 2025. The bonds were rated A1 by Moody's Investors Service and A-plus by Standard & Poor's.
Citigroup and Guggenheim Securities remarketed Posey County, Ind.'s $1.26 billion of Series 2013A revenue refunding bonds for the Midwest Fertilizer Co. The deal has been remarketed several times, the last being on March 27.
The bonds, which have a maturity date of July 1, 2046, were priced at par to yield 0.35% with a mandatory put date of Aug. 2, 2016. The issue was rated A1-plus by S&P.
Siebert Brandford Shank priced Harris County, Texas' $163.33 million of Series 2015B toll road senior lien revenue refunding bonds. The issue was priced to as 5s yield from 1.32% in 2020 to 3.22% in 2036. The bonds were rated Aa2 by Moody's and AA by Fitch Ratings.
Bank of America Merrill Lynch priced the California Pollution Control Financing Authority's $126 million of solid waste disposal AMT refunding revenue bonds for Waste Management Inc. The $76.23 million Series 2015B-1 bonds were priced at par to yield 3% in 2025. The $49.78 million Series 2015B-2 bonds were priced at par to yield 3.125% in 2040 with a mandatory tender in 2025. The issue is rated A-minus by S&P.
BAML also priced Alameda County's Washington Township Health Care District, Calif.'s $145.5 million of 2012 election Series 2015B general obligation bonds. The issue was priced to yield from 2.87% with a 3% coupon in 2027 to 3.26% in 2030; from 3.49% with a 3.25% coupon in 2032 to 3.70% with a 3.50% coupon in 2035. A 2040 split maturity was priced to yield 3.90% with 3.75% and 4% coupons and a split 2045 maturity was priced as 4s to yield 3.97% and as 5s to yield 3.44%. The bonds were rated Aa3 by Moody's.
Wells Fargo Securities priced the Virginia Housing Development Authority's $140.93 million of Series 2015A taxable mortgage pass-through bonds. The issue was priced at par to yield 3.25% in 2042. The deal was rated triple-A by Moody's, S&P and Fitch.
Goldman Sachs priced the New York State Power Authority's $67.62 million of Series 2015A revenue bonds. The issue was priced to yield from 0.24% with a 2% coupon in 2016 to 1.20% with 2% and 5% coupons in a split 2020 maturity. The deal was rated Aa2 by Moody's and AA by S&P and Fitch.
In the competitive sector, the California State Public Works Board postponed its $223 million of Series 2015H Department of Corrections and Rehabilitation lease revenue bonds for the Corcoran State Prison.
The sale, originally slated to sell on Thursday, will now be offered on Nov. 12. The issue was rated A1 by Moody's, A-plus by S&P and A by Fitch.
Tax-Exempt Money Market Funds Post Outflows
Tax-exempt money market funds experienced outflows of $606.7 million, bringing total net assets to $245.23 billion in the period ended Oct. 26, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $1.04 billion to $245.84 billion in the previous week.
The average, seven-day simple yield for the 376 weekly reporting tax-exempt funds remained at 0.01% for the 130th straight week.
The total net assets of the 950 weekly reporting taxable money funds rose $24.96 billion to $2.502 trillion in the period ended Oct. 27, after an outflow of $1.07 billion to $2.477 trillion the previous week.
The average, seven-day simple yield for the taxable money funds remained at 0.02% for the 41st week in a row.
Overall, the combined total net assets of the 1,326 weekly reporting money funds increased $24.36 billion to $2.748 trillion in the period ended Oct.20, which followed an outflow of $2.11 billion to $2.723 trillion the week before.
