The municipal market will see primary offerings dwindle to a few large deals on Thursday as traders keep a wary eye on bond yields.
Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 1.36% from 1.35% on Wednesday, the 10-year Treasury yield gained to 2.32% from 2.29% and the yield on the 30-year Treasury bond increased to 2.93% from 2.90%.
Top quality municipal bonds finished weaker on Wednesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.94% from 1.93% on Tuesday, while the 30-year GO yield was unchanged from 2.73%, according to the final read of Municipal Market Data's triple-A scale.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 84.9%, compared with 83.0% on Tuesday, while the 30-year muni to Treasury ratio stood at 94.3% versus 93.9%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,665 trades on Wednesday on volume of $12.39 billion.
On Thursday, HJ Sims is expected to price the District of Columbia’s $129.16 million of Series 2017A revenue bonds for the Ingleside at Rock Creek project and Series 2017B convertible subordinate entrance fee principal redemption bonds.
RBC Capital Markets is expected to price the Reading School District, Pa.’s $101.7 million of Series 2017 GOs on Thursday.
Since 2007, the school district has sold $465 million of securities with the largest issuance occurring in 2008 when it sold $153 million. It did not come to market in 2009 through 2010 and 2013 but with Thursday’s sale, the district is back in the market and is the most it has sold in years.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $2.0 billion to $8.52 billion on Thursday. The total is comprised of $4.34 billion of competitive sales and $4.18 billion of negotiated deals.
Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $26.5 million, bringing total net assets to $130.00 billion in the week ended July 24, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an outflow of $200.5 million to $129.98 billion in the previous week.
The average, seven-day simple yield for the 231 weekly reporting tax-exempt funds was unchanged at 0.36% from the previous week.
The total net assets of the 852 weekly reporting taxable money funds increased $10.62 billion to $2.480 trillion in the week ended July 25, after an inflow of $1.10 billion to $2.469 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.64% from 0.63% in the prior week.
Overall, the combined total net assets of the 1,083 weekly reporting money funds increased $10.65 billion to $2.610 trillion in the week ended July 25, after inflows of $896.3 million to $2.599 trillion in the prior week.