Municipal bond traders will be looking to see the last of the week’s hefty new issue slate come to market on Thursday.
U.S. Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 1.36% from 1.34% on Wednesday, while the 10-year Treasury yield gained to 2.42% from 2.38%, and the yield on the 30-year Treasury bond increased to 3.05% from 3.01%.
Top-rated municipal bonds finished stronger on Wednesday. The yield on the 10-year benchmark muni general obligation fell one basis point to 2.17% from 2.18% on Tuesday, while the 30-year GO yield decreased three basis points to 3.01% from 3.04%, 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 90.0%, compared with 90.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 99.0%, versus 100.1%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 44,147 trades on Wednesday on volume of $14.2 billion.
Citigroup is set to price the Louisiana Public Facilities Authority’s $412 million of Series 2017 refunding revenue bonds for the Ochsner Clinic Foundation.
The deal is rated A3 by Moody’s Investors Service and A-minus by Fitch Ratings.
Since 2007, the Louisiana PFA has issued roughly $7.91 billion of securities, with the most issuance occurring in 2008 when it sold $1.84 billion of bonds. The Authority saw a low year of issuance in 2012, when it sold $100 million.
Siebert Cisneros Shank is expected to price the Oakland Unified School District, Calif.’s $297.38 million of general obligation refunding bonds.
The deal is rated Aa3 by Moody’s, AA-minus by S&P Global Ratings and AAA by Fitch.
Bank of America Merrill Lynch is set to price the city and county of Denver’s $173 million of Series 2017A water revenue bonds and Series 2017B green bonds. The bonds are being issued through Denver’s Board of Water Commissioners.
The deal is rated triple-A by Moody’s, S&P and Fitch.
BAML is also set to price the Hayward Area Recreation and Park District, Calif.’s Series A election of 2016 GOs for institutions after holding a one-day retail order period.
The bonds were priced for retail to yield from 0.85% with a 5% coupon in 2018 to 3.45% with a 4% coupon in 2037; a 2046 maturity was priced as 4s to yield 3.63%. No retail orders were taken in the 2030 to 2033, 2035 to 2036 or 2042 maturities.
The deal is rated Aa1 by Moody’s and AA-plus by S&P.
Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $4.41 billion to $11.89 billion on Thursday. The total is comprised of $3.98 billion of competitive sales and $7.91 billion of negotiated deals.
Tax-exempt money market fund inflows
Tax-exempt money market funds experienced inflows of $1.17 billion, bringing total net assets to $129.72 billion in the week ended May 8, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an inflow of $62.3 million to $128.56 billion in the previous week.
The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds decreased to 0.37% from 0.41% from the previous week.
The total net assets of the 856 weekly reporting taxable money funds decreased $5.24 billion to $2.490 trillion in the week ended May 9, after an inflow of $9.50 billion to $2.496 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.44% from 0.43% in the prior week.
Overall, the combined total net assets of the 1,088 weekly reporting money funds decreased $4.07 billion to $2.620 trillion in the week ended May 9, after inflows of $9.26 billion to $2.624 trillion in the prior week.