Municipal bond traders saw a second wave of supply hit the market Wednesday as institutional pricings were released for the University of California and the N.Y. Metropolitan Transportation Authority and a second day of retail orders was held for the New York City bonds.
Meanwhile, prices on top-shelf munis closed mixed, according to traders, with yields on the long end falling by two basis points.
Barclays Capital priced the UC Regents $788.52 million of tax-exempt Series AO general revenue bonds for institutional investors with Stifel as co-manager. A one-day order period for retail investors was held on Tuesday.
The bonds were re-priced to yield from 0.20% with a 5% coupon in 2016 to 3.60% with a 3.5% coupon in 2035; a 2040 term bond was priced as a split maturity to yield from 3.26% with a 5% coupon to 3.68% with a 4% coupon; a 2042 term bond was priced to yield 3.78% with a 3.625% coupon. The series is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
RBC Capital Markets held the second day of a two-day retail order period on New York City's $799.94 million Fiscal 2015 Series C and D general obligation bonds. The issue will be priced for institutions on Thursday.
The NYC $670.8 million Series C bonds were priced to yield from 0.74% with a 4% coupon in 2017 to 2.97% with a 5% coupon in 2028; a 2031 maturity was priced as 5s to yield 3.13%, a 2034 maturity was prices as 5s to yield 3.26% and a 2035 maturity was priced at par to yield 3.60%. No retail orders were taken in 2029-2030 or 2032-2033; a 2016 maturity was offered as a sealed bid. The NYC $129.14 million Series D bonds were priced to yield from 0.74% with a 2% coupon in 2017 to 3.58% with a 3.50% coupon in 2034; the 2015 and 2016 maturities were offered as sealed bids. The deal is rated Aa2 by Moody's and AA by S&P and Fitch.
Bank of America Merrill Lynch priced the N.Y. Metropolitan Transportation Authority's $273.04 million of transportation revenue bonds for institutions after a one-day retail order period. The bonds were priced to yield from 0.80% with a 5% coupon in 2017 to 3.39% with a 5% coupon in 2035; a 2040 term was priced as 5s to yield 3.50%, a 2045 term was priced at par to yield 4% and a 2055 term was priced as 5 1/4s to yield 3.80%. The 2015-2016 maturities were offered as sealed bids. The issue is rated A2 by Moody's, AA-minus by S&P and A by Fitch.
In other negotiated deals, JPMorgan priced Macomb County, Mich.'s $263.56 million of taxable retiree health care bonds. The limited tax GOs were priced at par to yield from 0.57% in 2015 to 4.416% in 2035. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Citigroup Global Markets priced $289.83 million Houston airport system special facilities revenue and revenue refunding bonds for United Airlines terminal improvement projects. The $176.65 million Series 2015B-1 AMT bonds were priced as 5s to yield 4.48% in 2030 and 4.60% in 2035. The $47.39 million Series 2015B-2 AMT bonds were priced as 5s to yield 3.57% in 2020. The $66.79 million Series 2015C bonds were priced as 5s to yield 3.82%. The issue is rated B-plus by S&P.
Morgan Stanley priced the Louisiana Public Facilities Authority's $188.93 million hospital revenue refunding bonds for the Franciscan Missionaries of Our Lady Health System project. The bonds were priced to yield from 3.44% with a 5% coupon in 2028 to 3.86% with a 5% coupon in 2039. The issue is rated A2 by Moody's and A-plus by S&P.
Prices of top-quality munis finished mixed. The yield on the 10-year benchmark muni general obligation was unchanged from Tuesday at 2.18%, while the yield on 30-year GO fell by two basis points to 2.98% from 3.00%, according to the final read of Municipal Market Data's triple-A scale.
Treasury prices were mixed on Wednesday. The yield on the two-year Treasury note was flat at 0.68% from Tuesday, while the 10-year yield declined to 2.11% from 2.13% and the 30-year yield dropped to 2.68% from 2.72%.
The 10-year muni to Treasury ratio was calculated at 103.3% on Wednesday versus 101.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 111.0% compared to 109.8%.
