The last issuance of the week is expected to drift in on Thursday, on the heels of yields jumping due to details of tax reform being released.

Secondary market
Top-shelf municipal bonds were slightly weaker still on Thursday morning. The yield on the 10-year benchmark muni general obligation was as many as two basis points higher from 1.98% from on Wednesday, while the 30-year GO yield also increased as many as two basis points from 2.84%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were mostly weaker on Thursday morning. The yield on the two-year Treasury was flat at 1.47%, the 10-year Treasury yield increased to 2.33% from 2.31% and the yield on the 30-year Treasury bond rose to 2.88% from 2.86%.

On Wednesday, the 10-year muni-to-Treasury ratio was calculated at 85.9% compared with 86.1% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 99.3% versus 100.3%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 42,958 trades on Wednesday on volume of $14.567 billion.

Tax-exempt money market funds see outflows
Tax-exempt money market funds experienced outflows of $327.1 million, lowering total net assets to $127.90 billion in the week ended Sept. 25, according to The Money Fund Report, a service of iMoneyNet.com. This followed an inflow of $128.23 million to $128.23 billion in the previous week.

The average, seven-day simple yield for the 224 weekly reporting tax-exempt funds moved up to 0.40% from 0.37% the previous week.

The total net assets of the 830 weekly reporting taxable money funds increased $30.27 billion to $2.587 trillion in the week ended Sept. 26, after an outflow of $25.08 billion to $2.557 trillion the week before.

The average, seven-day simple yield for the taxable money funds held steady at 0.68% from the prior week.

Overall, the combined total net assets of the 1,054 weekly reporting money funds increased $29.94 billion to $2.715 trillion in the week ended Sept. 26, after outflows of $24.85 million to $2.685 trillion in the prior week.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $4.163 billion to $9.43 billion on Thursday. The total is comprised of $3.93 billion of competitive sales and $5.50 billion of negotiated deals.

Primary market
Morgan Stanley is slated to price the Industrial Development Authority of the County of Maricopa, Ariz.’s $351.985 million of revenue bonds for Banner Health. The deal is rated AA-minus by S&P Global Ratings and Fitch Ratings.

Bank of America Merrill Lynch is expected to price South Dakota Health and Educational Facilities Authority’s $216 million of revenue refunding bonds. The deal is rated A1 by Moody’s Investors Service and AA-minus by S&P.

On the competitive side, the California State Public Works Board is scheduled to sell $202.325 million of various lease revenue bonds. The deal is rated A1 by Moody’s and A-plus by S&P and Fitch Ratings.

Since 2007, the California PWB has sold about $13.57 billion of securities, with the most issuance in 2009 when it sold $2.19 billion. The board saw the lowest year of issuance in 2008 when it sold $365 million. With Thursday’s sale, the board sold more this year than last year.

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Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.