Municipal bond traders will be seeing more deals come their way on Wednesday with competitive sales from a Virginia issuer and a negotiated deal from Georgia.
Treasuries were unchanged on Wednesday. The yield on the two-year Treasury was flat from 1.35% on Tuesday, the 10-year Treasury yield was steady from 2.26% and the yield on the 30-year Treasury bond was unchanged from 2.85%.
Top-rated municipal bonds finished stronger on Tuesday. The yield on the 10-year benchmark muni general obligation fell five basis points to 1.94% from 1.99% on Monday, while the 30-year GO yield dropped five basis points to 2.74% from 2.79%, 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 85.8%, compared with 86.4% on Monday, while the 30-year muni to Treasury ratio stood at 98.0% versus 96.5%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,086 trades on Tuesday on volume of $10.16 billion.
In the competitive arena on Wednesday, the Virginia College Building Authority is selling $598.89 million of educational facilities 21st Century College and equipment program revenue bonds in three separate sales.
The deals consist of $352.25 million of Series 2017C Tranche 2 bonds, $146.12 million of Series 2017C Tranche 1 bonds and $100.52 million of Series 2017D taxable bonds.
The deals are rated Aa1 by Moody’s Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
Since 2007, the authority has sold about $8.5 billion of debt with the most issuance occurring in 2009 when it issued $1.69 billion of bonds. It sold the least amount of securities in 2008, when it issued $144.1 million of bonds.
In the negotiated sector on Wednesday, Bank of America Merrill Lynch priced the Georgia State Road and Tollway Authority’s $353 million of Series 2017A and B federal highway grant anticipation revenue and refunding revenue bonds and Series 2017A and B federal highway grant reimbursement revenue and refunding revenue bonds.
The anticipation bonds are rated A2 by Moody’s, AA by S&P and A-minus by Fitch while the reimbursement bonds are rated A1 by Moody’s, AA by S&P and A-plus by Fitch.
Barclays Capital is expected to price Massachusetts’ consolidated loan of 2014 Series D multi-modal Subseries D-2 general obligation bonds.
The deal is rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.
Jefferies is expected to price the Alaska Housing Finance Corp.’s $142.96 million of Series 2017A state capital project bonds.
The deal is rated AA-plus by S&P and Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $2.8 billion to $6.38 billion on Tuesday. The total is comprised of $2.62 billion of competitive sales and $3.76 billion of negotiated deals.