Prices of top-shelf municipal bonds were weaker at mid-session, according to traders, as a slew of deals came to market in the primary.
Secondary Market
The yield on the 10-year benchmark muni general obligation was one to three basis points stronger from 2.01% on Wednesday, while the yield on the 30-year GO was one to three basis points stronger from 3.04%, according to a 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 2.15% from 2.10% and the 30-year yield increased to 2.95% from 2.87%.
The 10-year muni to Treasury ratio was calculated on Wednesday at 96.1% versus 98.8% on Tuesday, while the 30-year muni to Treasury ratio stood at 106.0% compared to 106.4%, according to MMD.
Primary Market
In the negotiated sector, Raymond James priced the Broward County Airport Authority, Fla.'s $482.25 million of airport system revenue and revenue refunding bonds for the Fort Lauderdale International Airport.
The $426.49 million of Series 2015A revenue bonds, subject to the alternative minimum tax, were priced to yield from 0.79% with a 4% coupon in 2017 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%; a 2016 maturity was offered as a sealed bid.
The $9.58 million of Series 2015B non-AMT revenue bonds were priced as 5s to yield 3.59% in 2045.
The $46.19 million of Series 2015C AMT revenue refunding bonds were priced to yield from 0.79% with a 4% coupon in 2017 to 2.98% with a 5% coupon in 2026; a 2016 maturity was offered as a sealed bid.
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 $1.23 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.
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.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 38,014 trades on Wednesday on volume of $10.59 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $845 million to $8.43 billion on Thursday. The total is comprised of $2.70 billion competitive sales and $5.73 billion of negotiated deals.
