Top-quality municipal bonds finished stronger on Wednesday, traders said, as a few more deals hit the marketplace.
The yield on the 10-year benchmark muni general obligation fell three basis points to 1.90% from 1.93% on Tuesday, while the 30-year GO yield dropped one basis point to 2.74% from 2.75%, according to the final read of Municipal Market Data's triple-A scale.
Treasuries were also stronger on Wednesday. The yield on the two-year Treasury fell to 1.33% from 1.36% on Tuesday, the 10-year Treasury yield dropped to 2.24% from 2.28% and the yield on the 30-year Treasury bond decreased to 2.82% from 2.86%.
The 10-year muni-to-Treasury ratio was calculated at 84.9% on Wednesday, compared with 84.5% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 97.3% versus 95.9%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,825 trades on Tuesday on volume of $7.81 billion.
In the competitive arena, the Florida State Board of Education competitively sold $144.23 million of Series 2017A full faith and credit public education capital outlay refunding bonds.
JPMorgan Securities won the bonds with a true interest cost of 2.72%. The issue was priced to yield from 0.77% with a 5% coupon in 2018 to 3.16% with a 3.50% coupon in 2037.
The deal is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.
Bank of America Merrill Lynch priced the Tyler Independent School District, Texas’ $175.77 million of Series 2017 unlimited tax school building bonds.
The issue was priced to yield from 0.80% with a 5% coupon in 2018 to 2.89% with a 5% coupon in 2042; a 2047 maturity was priced as 4s to yield 3.25%.
The deal, which is backed by the Permanent School Fund guarantee program, is rated AAA by S&P and Fitch.
Siebert Cisneros Shank priced San Antonio, Texas’ $196.02 million of new Series 2017 electric and gas systems revenue refunding bonds on Wednesday.
Pricing details were unavailable at press time.
The deal is rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.
Since 2007, the city has sold over $13 billion of debt with the most issuance occurring in 2012 when it offered $2.06 billion of bonds. The city sold the least amount of bonds in that time frame in 2011, when it issued $411.3 million.
Action picks up again on Thursday, when Goldman Sachs prices Miami-Dade County, Fla.’s $647.79 million of AMT Series B and taxable Series D aviation revenue and revenue refunding bonds.
The deal is rated A by S&P and Fitch and AA-minus by Kroll Bond Rating Agency.
Bank of America Merrill Lynch is expected to price the Ohio Water Development Authority’s $250 million of Series 2017B water pollution control loan fund revenue notes on Thursday.
Raymond James & Associates is expected to price the Hays Consolidated Independent School District, Texas’ unlimited tax school building bonds. The deal is rated triple-A by Moody’s and Fitch.