Municipal bond traders will be looking West on Wednesday as they eye a large deal coming from an issuer in the Aloha State.
Primary Market
Bank of America Merrill Lynch is set to price Honolulu City and County, Hawaii's $382 million of revenue first bond resolution senior series 2016A&B refunding bonds.
The deal is rated Aa2 by Moody's Investors Service and AA-minus by Fitch Ratings.
Since 2006, the issuer has sold $6.26 billion of securities, with the largest sales in 2015 when it offered $1.59 billion. Honolulu only issued more than $1 billion one other time in that period, in 2012, which was followed by a two-year absence from the market.
In the competitive arena, the Louisville and Jefferson County Visitors and Convention Commission, Ky., is selling $138.59 million of Series 2016 dedicated tax revenue bonds.
The deal is rated A2 by Moody's and A by S&P Global Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $1.63 billion to $9.94 billion on Wednesday. The total is comprised of $3.88 billion of competitive sales and $6.06 billion of negotiated deals.
Secondary Market
U.S. Treasuries were mixed on Wednesday. The yield on the two-year Treasury rose to 0.75% from 0.74% on Tuesday, the 10-year Treasury yield was unchanged from 1.57% and the yield on the 30-year Treasury bond decreased to 2.28% from 2.29%.
Municipal bond prices ended weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.41% from 1.40% on Monday, while the yield on the 30-year muni increased one basis point to 2.14% from 2.13%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 89.5% compared to 90.4% on Monday, while the 30-year muni to Treasury ratio stood at 93.2% versus 93.6%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,125 trades on Tuesday on volume of $9.87 billion.
