The municipal bond primary market will be seeing several big offerings hit the screens on Wednesday — dominated by a taxable deal in the negotiated bond sector and a competitive note sale.
Secondary market
The MBIS municipal non-callable 5% GO benchmark scale was weaker in early trading.
The 10-year muni benchmark yield rose to 2.294% on Wednesday from the final read of 2.278% on Tuesday, according to
The MBIS benchmark index is updated hourly on the
U.S. Treasuries were weaker in early activity. The yield on the two-year Treasury gained to 1.99% on Wednesday from 1.96% on Tuesday, the 10-year Treasury yield rose to 2.59% from 2.55% and the yield on the 30-year Treasury increased to 2.94% from 2.88%.
Top-rated municipal bonds finished weaker on Tuesday. The yield on the 10-year benchmark muni general obligation rose four basis points to 2.05% from 2.01% on Monday, while the 30-year GO yield gained five basis points to 2.64% from 2.59%, according to the final read of MMD’s triple-A scale.
On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 80.5% compared with 81.0% on Monday, while the 30-year muni-to-Treasury ratio stood at 91.5% versus 92.1%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 44,737 trades on Tuesday on volume of $10.96 billion.
Primary market
On Wednesday, Morgan Stanley is expected to price the Stanford Health Care, Calif.’s $500 million of Series 2018 corporate CUSIP taxable bonds. The deal is rated Aa3 by Moody’s, AA-minus by S&P and AA by Fitch.
In the competitive arena on Wednesday, Worcester, Mass., is selling $103.795 million of GOs in two separate sales.
The deals consist of $75.195 million of municipal purpose loan of 2018 Series A GOs and $28.6 million of taxable Series B GOs.
The deals are rated Aa3 by Moody’s Investors Service, AA-minus by S&P Global Ratings and AA by Fitch Ratings.
Since 2008, Worcester has sold about $963 million of bonds, with the most issuance occurring in 2016 when it sold $170 million. The city saw a low year in 2009 when it sold $40.4 million.
In the short-term competitive sector on Wednesday, Colorado is selling $375 million of Series 2017B education loan program tax and revenue anticipation notes. The TRANs are rated MIG1 by Moody’s and SP1-plus by S&P.
On Thursday, RBC Capital Markets is expected to price the Pennsylvania Commonwealth Financing Authority’s $410 million of Series 2018A taxable revenue bonds for the Plancon program. The deal is rated A1 by Moody’s, A by S&P and A-plus by Fitch.
JPMorgan Securities is set to price the Illinois Finance Authority’s $218.67 million of Series 2018 taxable revenue refunding bonds for the Ann and Robert H. Lurie Children’s Hospital of Chicago. The deal is rated AA-minus by S&P and AA by Fitch.
Bond Buyer 30-day visible supply at $5.84B
The Bond Buyer's 30-day visible supply calendar decreased $1.14 billion to $5.84 billion on Wednesday. The total is comprised of $2.48 billion of competitive sales and $3.36 billion of negotiated deals.
Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation.