Prices of top-quality municipal bonds were mixed at mid-session, traders said, as yields on some maturities were steady to up by as much as one basis point.
In the primary, Bank of America Merrill Lynch priced the state of Massachusetts' $955 million of general obligation bonds for institutions.
Secondary Market
The yield on the 10-year benchmark muni general obligation was unchanged from 2.32% on Tuesday, while the yield on the 30-year GO was up by as much as one basis point from 3.30%, according to a read of Municipal Market Data's triple-A scale.
Treasury prices were mixed on Wednesday with the yield on the two-year Treasury note rising to 0.70% from 0.67% on Tuesday, while the 10-year yield rose to 0.40% from 2.39% and the 30-year yield decreased to 3.17% from 3.20%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 96.4% versus 97.0% on Monday, while the 30-year muni to Treasury ratio stood at 103.2% compared to 104.1%, according to MMD.
Puerto Rico Trades
Puerto Rico's legislature has passed a bill to immunize the Government Development Bank's leaders against lawsuits. Separately, GDB's chairman of the board, David Chafey, said he would resign next week for personal reasons.
And in a related action, the Puerto Rico Electrical Power Authority has replaced its executive director, general counsel, chief financial officer, generation director and customer service director.
The news sent prices of Puerto Rico general obligation bonds down in trading on Wednesday. The Puerto Rico commonwealth Series A of 2014 GOs traded at 79 when a customer sold $2 million of the paper, according to the Municipal Securities Rulemaking Board's EMMA website.
On Tuesday, the GOs traded between 80.75 and 79.125 on volume of $26.98 million. The two biggest sell trades on Tuesday were for $5 million each, when two customers sold the GOs for 79.50 and 79.125. The three biggest buy trades on Tuesday were for $2 million apiece when three customers bought the GOs for 80.50, 80.50 and 79.375, according to EMMA.
Primary Market
Bank of America Merrill Lynch priced for institutions the state of Massachusetts' $954.46 million of GO consolidated loan of 2015, Series C refunding bonds and Series 2015A bonds. The deal had a retail order period on Tuesday.
The $704.46 million of Series 2015A GO refunding bonds were priced as 3s to yield 2.07% in 2022 and as 5s to yield 2.22% in 2023. The bonds were also priced to yield from 2.55% with a 5% coupon in 2025 to 3.84% with a 4% coupon and 3.41% with a 5% coupon in a split 2037 maturity. The 2016 and 2017 maturities were offered as sealed bids.
The $250 million of Series C Consolidated Loan of 2015 GOs were priced as 5s to yield 1.05% in 2018 to 2.07% in 2022, 2.43% in 2024, 3.15% in 2031, 3.20% in 2032 and 3.51% in 2040. A split 2045 term bond was priced at par to yield 4.00% and as 5s to yield 3.58%.
The deal is rated Aa1 by Moody's and AA-plus by both S&P and Fitch Ratings.
Siebert Brandford Shank priced for institutions Miami-Dade County, Fla.'s $206.08 million of Series 2015A public facilities revenue and refunding bonds for the Jackson Health System. The issue had a retail order period on Monday.
The bonds were priced to yield from 1.06% with 4% and 5% coupons in a split 2017 maturity to 3.90% with a 5% in 2036. A 2016 maturity was offered as a sealed bid. The issue was rated Aa2 by Moody's, A-plus by S&P and AA-minus by Fitch.
Barclays Capital received the written award on the Connecticut Health and Higher Educational Facilities Authority's $300 million of Series 2015A revenue bonds for Yale University. The bonds were priced at par to yield 1.375% in 2035. The issue is rated triple-A by Moody's and S&P.
Stifel is set to price the city of Los Angeles' $1.39 billion of Series 2015 TRANs. Proceeds of the sale will be used to smooth cash flow and make pension payments before July 15, generating about $36.4 million in savings from a pre-payment discount.
"We think this will get good reception," LA Chief Administrative Officer Miguel Santana told The Bond Buyer last week. "Last year, we got 11 basis points [on the MIG1 one-year scale] and we hope to be competitive this year. We are a safe bet and think there will be a lot of interest."
The TRANs are rated MIG1 by Moody's Investors Service and SP1-plus by Standard & Poor's. JP Morgan and Ramirez are co-managers on the deal with and Omnicap Group serving as the financial advisor.
Since 1996, Los Angles has sold about $15 billion of TRANs with the most issuance occurring in 2013 and 2014 when it sold $1.3 billion and $1.4 billion, respectively. The least amount of issuance took place in 1998 and 1999 when it sold $248 million and $191 million, respectively.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 40,431 trades on Tuesday on volume of $7.628 billion. The most active bond, based on the number of trades, was the Illinois Series A of 2009 GO 5s of 2030, which traded 128 times at an average price of 102.076 with an average yield of 4.294%. The bonds were initially priced at 105.146.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.172 billion to $9.87 billion on Wednesday. The total is comprised of $2.10 billion competitive sales and $7.87 billion of negotiated deals.
