Top-rated municipal bonds were mixed at midday, traders said, as primary offerings dwindled down to a few last big deals.
Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.94% on Wednesday, while the 30-year GO yield rose as much as two basis points from 2.73%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were weaker on Thursday. The yield on the two-year Treasury rose to 1.36% from 1.35% on Wednesday, the 10-year Treasury yield gained to 2.32% from 2.29% and the yield on the 30-year Treasury bond increased to 2.93% from 2.90%.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 84.9%, compared with 83.0% on Tuesday, while the 30-year muni to Treasury ratio stood at 94.3% versus 93.9%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,665 trades on Wednesday on volume of $12.39 billion.
Primary market
On Thursday, the Florida Department of Management and Services competitively sold $187.83 million of Series 2017A facilities pool revenue refunding bonds.
Raymond James & Associates won the bonds with a true interest cost of 2.3874%. Pricing information was not immediately available.
The deal is rated Aa2 by Moody’s Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
HJ Sims is expected to price the District of Columbia’s $129.16 million of Series 2017A revenue bonds for the Ingleside at Rock Creek project and Series 2017B convertible subordinate entrance fee principal redemption bonds.
RBC Capital Markets is expected to price the Reading School District, Pa.’s $101.7 million of Series 2017 GOs.
Since 2007, the school district has sold $465 million of securities with the largest issuance occurring in 2008 when it sold $153 million. It did not come to market in 2009 through 2010 and 2013 but with Thursday’s sale, the district is back in the market and is the most it has sold in years.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar increased $2.0 billion to $8.52 billion on Thursday. The total is comprised of $4.34 billion of competitive sales and $4.18 billion of negotiated deals.
Tax-exempt money market funds see inflows
Tax-exempt money market funds experienced inflows of $26.5 million, bringing total net assets to $130.00 billion in the week ended July 24, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an outflow of $200.5 million to $129.98 billion in the previous week.
The average, seven-day simple yield for the 231 weekly reporting tax-exempt funds was unchanged at 0.36% from the previous week.
The total net assets of the 852 weekly reporting taxable money funds increased $10.62 billion to $2.480 trillion in the week ended July 25, after an inflow of $1.10 billion to $2.469 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.64% from 0.63% in the prior week.
Overall, the combined total net assets of the 1,083 weekly reporting money funds increased $10.65 billion to $2.610 trillion in the week ended July 25, after inflows of $896.3 million to $2.599 trillion in the prior week.
