Chicago BOE, Illinois toll sales on tap

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Two big deals from Illinois issuers are scheduled for sale on Wednesday as the Chicago Board of Education gets set to hit the market with the first part of its double-barreled offering and Illinois toll bonds are slated to be priced.

Secondary market
U.S. Treasuries were stronger on Wednesday. The yield on the two-year Treasury dipped to 1.68% from 1.69% on Tuesday, the 10-year Treasury yield declined to 2.33% from 2.38% and the yield on the 30-year Treasury decreased to 2.79% from 2.84%.

Municipal bonds finished slightly weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose one basis point to 2.00% from 1.99% on Monday, while the 30-year GO yield gained one basis point to 2.70% from 2.69%, 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 84.1% compared with 80.6% on Monday, while the 30-year muni-to-Treasury ratio stood at 95.3% versus 92.6%, according to MMD.

AP-MBIS 10-year muni at 2.267%, 30-year at 2.791%
The Associated Press-MBIS municipal non-callable 5% GO benchmark scale was stronger in early trading.

The 10-year muni benchmark yield fell to 2.267% on Wednesday from the final read of 2.299% on Tuesday, according to Municipal Bond Information Services, a national consortium of municipal interdealer brokers. The AP-MBIS 30-year benchmark muni yield dropped to 2.791% from 2.809%.

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

MSRB: Previous session`s activity
The Municipal Securities Rulemaking Board reported 39,381 trades on Tuesday on volume of $10.76 billion.

Primary market
The Chicago Board of Education is coming to market on Wednesday with the first part of a $922 million bond offering.

JPMorgan Securities is set to price the board’s $64.9 million Series 2017 capital improvement tax bonds.

This series is rated A by Fitch Ratings.

On Thursday, JPMorgan will price the BOE's $857.43 million Series 2017 unlimited tax dedicated revenue general obligation bonds.

This series is rated B by S&P Global Ratings and BB-minus by Fitch.

Also on Wednesday, Loop Capital Markets will price the Illinois State Toll Highway Authority’s $300 million of Series 2017A toll highway senior revenue bonds.

The deal is rated Aa3 by Moody’s Investors Service and AA-minus by S&P and Fitch.

Since 2007, the authority has sold about $6.9 billion of debt, with the most issuance occurring in 2014 when it sold $1.54 billion of securities. The authority did not come to market in 2011 or 2012.
Bank of America Merrill Lynch is set to price the Ohio Air Quality Development Authority’s $210 million of Series 2017 exempt facilities revenue bonds for the Pratt Paper LLC project.

The deal is unrated.

And Citigroup is expected to price the Guam Waterworks Authority’s $100 million of Series 2017 water and wastewater system revenue refunding bonds.

The deal is rated Baa2 by Moody’s, A-minus by S&P and BBB-minus by Fitch.

In the competitive arena, the Cook County Community College District No. 512, Ill., is selling $107.12 million of Series 2017B general obligation refunding bonds.

The deal is rated Aaa by Moody’s.

The Dublin Unified School District, Calif., is selling $100 million of Series B Election of 2016 GOs.

The deal is rated Aa1 by Moody’s and AA by S&P.

The East Bay Regional Park District., Calif., is selling $125.67 million of GOs in two separate offerings.

The deals consist of $80 million of Series 2017A-1 Election of 2008 GOs and Series 2017A-2 Election of 2008 GO green bonds and $45.67 million of Series 2017B-1 GO refunding bonds and Series 2017B2 GO refunding green bonds.

The deals are rated triple-A by Moody’s and S&P.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $2.57 million to $7.80 billion on Wednesday. The total is comprised of $2.08 billion of competitive sales and $5.72 billion of negotiated deals.

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Primary bond market Secondary bond market Board of Education of the City of Chicago Illinois State Toll Highway Authority Ohio Air Quality Development Authority Guam Waterworks Authority