Top-rated municipal bonds were stronger at mid-session as action in the primary market heated up.

Secondary market
The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 2.01% on Tuesday, while the 30-year GO yield dropped as much as two basis points from 2.82%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were unchanged on Wednesday. The yield on the two-year Treasury was flat from 1.51% on Tuesday, the 10-year Treasury yield was steady from 2.34% and yield on the 30-year Treasury bond was unchanged from 2.87%.

On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 85.9% compared with 85.4% on Friday, while the 30-year muni-to-Treasury ratio stood at 98.0% versus 97.5%, according to MMD.

AP-MBIS 10-year muni slips to 2.32%
The Associated Press-MBIS 10-year municipal benchmark 5% general obligation was at 2.32% at midday, down from a final reading of 2.33% on Tuesday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers.

The AP-MBIS index is a yield curve built on market data aggregated from MBIS member firms and will be updated hourly on the forthcoming Bond Buyer Data Workstation.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 46,418 trades on Tuesday on volume of $7.71 billion.

Primary market
On Wednesday, Bank of America Merrill Lynch priced the North Texas Tollway Authority’s $2.54 billion of system revenue and refunding bonds for retail investors ahead of the institutional pricing on Thursday.

The $1.77 billion of Series 2017A first tier bonds were priced to yield from 1.05% with 4% and 5% coupons in a triple-split 2019 maturity to 3.36% with a 4% coupon and 3.06% with a 5% coupon in a split 2036 maturity; a split half of a 2043 maturity was priced as 5s to yield 3.25%. No retail orders were taken in the split portions of the 2019-2027, 2031, 2043 maturities or the 2030, 2033-2035, 2037-2039 or 2048 maturities.

The $772.3 million of Series 2017B second tier bonds were priced to yield from 1.11% with a 4% coupon in 2019 to 3.27% with a 5% coupon in 2039. No retail orders were taken in the split halves of the 2023-2027 or 2030-2032, 2043, or 2048 maturities.

The Series 2017A bonds are rated A1 by Moody’s Investors Service and A by S&P Global Ratings; the Series 2017B bonds are rated A2 by Moody’s and A-minus by S&P except for the 2034-2038 maturities which are insured by Assured Guaranty Municipal and rated A2 by Moody’s and AA by S&P.

BAML also priced the Indiana Finance Authority’s $146.69 million of state revolving fund program green bonds in two series.

The $21.07 million of Series 2017B green bonds were priced as 5s to yield from 1.05% in 2020 to 2.19% in 2028.

The $125.62 million of Series 2017C refunding green bonds were priced as 5s to yield 0.90% in 2018 and from 1.17% in 2021 to 2.45% in 2031.

The deal is rated triple-A by Moody’s, S&P and Fitch Ratings.

Also coming Wednesday is an $897 million deal from the airport commission of the city and county of San Francisco.

Jefferies is expected to price the issue for the San Francisco International Airport, which is composed of Series 2017A, Series 2017D and Series 2018A bonds subject to the alternative minimum tax, Series 2017 non-AMT bonds and Series 2017C taxables.

The bonds are rated A1 by Moody’s and A-plus by S&P and Fitch Ratings.

Since 2008 the commission has sold $7.45 billion of securities, with the most issuance occurring in 2008 when it sold $1.48 billion. It did not come to market at all in 2015.

In the competitive arena on Wednesday, Texas A&M University Board of Regents sold $400.1 million of permanent university fund bonds in two offerings.

Barclays Capital won the $309.83 million of Series 2017B taxables with a true interest cost of 3.69%. Pricing information was not immediately available.

UBS Financial won the $90.27 million of Series 2017A tax-exempts with a TIC of 2.87%.

Both deals are rated triple-A by Moody’s, S&P and Fitch.

The state of Ohio sold $265 million of bonds in two sales.

JPMorgan Securities won the $175 million of Series 2017A tax-exempt infrastructure improvement general obligation bonds with a TIC of 3.26%. Pricing information was not immediately available.

Fifth Third Securities won the $90 million of Series 2017A taxable Third Frontier Research and Development taxable GOs with a TIC of 2.495%.

The deals are rated Aa1 by Moody’s and AA-plus by S&P and Fitch.

In the short-term competitive sector on Wednesday, the Louisville and Jefferson County Metropolitan Sewer District, Ky., sold $226.34 million of Series 2017 sewer and drainage system subordinated bond anticipation notes.

Citigroup won the notes with a bid of 5% and a premium of $8,811,416.20, an effective rate of 1.041902%. The notes were priced at approximately 103.94 to yield 1% on Nov. 12, 2018.

The BANs are rated MIG1 by Moody’s and SP1-plus by S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $1.84 billion to $12.21 billion on Wednesday. The total is comprised of $6.699 billion of competitive sales and $5.52 billion of negotiated deals.

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