Municipal bond traders will be getting some more supply come their way on Wednesday as the new issue pipeline keeps on churning out deals.
Secondary Market
Treasuries were unchanged on Wednesday. The yield on the two-year Treasury was unchanged from 0.67% on Tuesday, the 10-year Treasury yield was flat at 1.54% and the yield on the 30-year Treasury bond was steady from 2.29%.
Top-shelf municipal bonds finished weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose three basis points to 1.45% from 1.42% on Monday, while the yield on the 30-year muni increased four basis points to 2.17% from 2.13%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated at 94.3% on Tuesday compared to 94.9% on Monday, while the 30-year muni to Treasury ratio stood at 94.9% versus 95.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,369 trades on Tuesday on volume of $8.89 billion.
Primary Market
Stifel is expected to price Wisconsin's $598.13 million of taxable general fund annual appropriation refunding bonds of 2016, Series A and B. The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
Bank of America Merrill Lynch is set to price two deals for Miami-Dade County, Fla., totaling around $742 million.
The offerings consist of $377 million of Series 2016B taxable aviation revenue refunding bonds and $365 million of Series 2016A aviation revenue refunding bonds not subject to the alternative minimum tax. The deals are rated A by S&P and Fitch.
Since 2006, Miami-Dade County has issued $16.87 billion of securities with the largest issuance coming in 2010 when it sold $2.38 billion. The county has issued more than $1 billion ever year, except for 2006 and 2011. With the two negotiated sales on Wednesday, the county is on the verge of issuing $2 billion or greater for the second consecutive year and what would be the fourth time since 2006.
Citigroup is expected to price the San Diego Regional Transportation Commission's $325 million of Series 2016A sales tax revenue binds. The deal is rated triple-A by S&P and Fitch.
RBC Capital Markets is set to price Hamilton County, Ohio's $321.73 million of Series 2016A sales tax refunding bonds. The deal is rated A1 by Moody's, AA-minus by S&P and A-plus by Fitch.
In the competitive sector, Connecticut is selling two separate issues totaling $500 million. The deals consist of $250 million of Series 2016D general obligation bonds and $250 million of Series 2016A taxables GOs. The deals are rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Clark County, Nev., is competitively selling $251.58 million of Series 2016 limited tax GO water reclamation refunding bonds additionally secured by pledged revenues. The deal is rated Aa1 by Moody's and triple-A by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $4.01 billion to $13.52 billion on Wednesday. The total is comprised of $4.27 billion of competitive sales and $9.25 billion of negotiated deals.
