Top-rated municipal bonds were substantially weaker in early trading, according to traders, with yields on long maturities rising 10 to 12 basis points.
The yield on the 10-year benchmark muni general obligation rose between eight and 10 basis points from 1.71% on Tuesday, while the yield on the 30-year increased by 10 to 12 basis points from 2.54%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were mixed on Wednesday. The yield on the two-year declined to 0.85% from 0.86% on Tuesday, the 10-year Treasury rose to 1.96% from 1.86% and the yield on the 30-year Treasury bond increased to 2.76% from 2.63%.
U.S. equities were slightly weaker after plunging overnight when Dow futures dropped over 900 points. In early trading, the Dow Jones Industrial Average dropped about 45 points, the S&P 500 decreased around 10 points and the Nasdaq declined about 40 points.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 91.7% compared to 93.1% on Monday, while the 30-year muni to Treasury ratio stood at 96.7% versus 97.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,742 trades on Tuesday on volume of $7.55 billion.
Primary Market
Municipal bond traders will also be seeing the last of the week's deals come to market on Wednesday while dealing with the aftermath of Tuesday's surprise presidential election results.
For the bond market, voters passed at least 122 of the largest bond referendums worth a total of $48.58 billion. Over $70 billion of bonds were on the ballot, the most since 2006.
On Wednesday, Morgan Stanley is set to price Mississippi's Series 2016A tax-exempt general obligation bonds.
The deal is rated AA by S&P Global Ratings.
Since 2006, the Magnolia State has issued about $5.88 billion of debt, with the most issuance occurring in 2015 when it sold $1.22 billion of bonds. It sold the least amount of securities in 2014, when it offered only $7 million of debt.
Stifel is expected to price the Sacramento Area Flood Control Agency Consolidated Capital Assessment District No. 2, Calif.'s $220 million of Series 2016A tax-exempt assessment revenue bonds on Wednesday.
The deal is rated Aa3 by Moody's and AA by S&P.
Wells Fargo Securities is set to price Montgomery County, Texas' $141.43 million of Series 2016A unlimited tax road bonds and limited tax refunding bonds on Wednesday.
JPMorgan Securities is expected to price the New Jersey Educational Facilities Authority's $137 million of Series 2016B&C higher education capital improvement fund issue bonds on Wednesday.
The deal is rated A3 by Moody's and A-minus by S&P and Fitch Ratings.
Citigroup is set to price the Bristol, Tenn., Industrial Development Board's $122 million of Series 2016A state sales tax revenue bonds and Series 2016B sales tax revenue capital appreciation bonds for the Pinnacle Project on Wednesday.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $2.27 billion to $9.40 billion on Wednesday. The total is comprised of $2.97 billion of competitive sales and $4.43 billion of negotiated deals.
