Top-quality municipal bonds were mixed at midday, traders said, as more supply slipped into the market. Traders were also watching yields, which have been trending downward as of late.

Secondary market
The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 2.02% on Tuesday, while the 30-year GO yield was unchanged from 2.86%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were weaker on Wednesday. The yield on the two-year Treasury rose to 1.18% from 1.16% on Tuesday, while the 10-year Treasury yield gained to 2.22% from 2.18%, and the yield on the 30-year Treasury bond increased to 2.88% from 2.84%.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 92.9% compared with 91.6% on Monday, while the 30-year muni to Treasury ratio stood at 100.8%, versus 100.0%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 42,704 trades on Tuesday on volume of $11.04 billion.

Primary market
On Wednesday, Bank of America Merrill Lynch priced the UAB Medicine Finance Authority, Ala.'s $180.85 million of Series 2017 B1 and B2 revenue bonds.

The $44.98 Series 2017B-1 bonds were priced to yield from 2.79% with a 5% coupon in 2028 to 3.40% with a 3.25% coupon in 2031; a 2042 maturity was priced as 3 3/4s to yield 3.91%.

The $135.88 million of Series 2017B-2 bonds were priced to yield from 2.79% with a 5% coupon in in 2028 to 3.42% with a 5% coupon in 2037; a 2041 maturity was priced as 5s to yield 3.50% and a 2047 maturity was priced at par to yield 4%.

The deal is rated A1 by Moody's Investors Service and AA-minus by S&P Global Ratings.

Barclays Capital is set to price Pennsylvania State University’s $284.77 million of Series 2017A tax-exempt and Series 2017B taxable bonds.

Market sources said a premarketing scale on the deal was released on Tuesday.

The $159.77 million of Series 2017A tax-exempts were premarketed to yield from 1.07% with a 4% coupon in 2019 to 3.02% with a 5% coupon in 2037; a 2042 maturity was premarketed as 5s to yield 3.11% and a 2047 maturity was premarketed as 5s to yield 3.16% with the 2018 maturity being offered as a sealed bid.

Sources said the $125 million of Series 2017B taxables were premarketed to yield from about 30 basis points over the comparable Treasury security in 2019 to about 120 basis points over the comparable Treasury security in 2032 and about 80 basis points over the comparable Treasury security in 2037 and about 95 basis points over the comparable Treasury security in 2047 with the 2018 maturity being offered as a sealed bid.

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

D.A. Davidson & Co. is expected to price Centerra Metro District No. 1, Colo.'s $187.53 million of tax-exempt revenue bonds.

Raymond James & Associates is set to price the Fresno Joint Powers Financing Authority, Calif.'s $148.57 million of lease revenue refunding and taxable bonds.

The deal is rated A2 by Moody's and AA by S&P.

Morgan Stanley is scheduled to price the city of Cape Coral, Fla.’s $103.4 million of utility improvement refunding assessment bonds.

The deal is rated A2 by Moody’s and BBB-plus by S&P.

Since 2007, the city has issued $872 million of debt, with the most issuance occurring in 2011 when it sold $299 million. The city did not come to market at all in 2008, 2012 through 2014 or in 2016.

In the competitive arena, the town of Gilbert, Ariz., sold $124.61 million of Series 2017 general obligation and GO refunding bonds.

JPMorgan won the deal with a true interest cost of 2.33%. Pricing information was not immediately available.

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

Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $40.7 million to $14.46 billion on Wednesday. The total is comprised of $3.85 billion of competitive sales and $10.61 billion of negotiated deals.

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