Top shelf municipal bonds were steady at mid-session, as traders saw some more of the week's big new issue slate hit the market, led off by the Pennsylvania Turnpike deal.
Primary Market
Citigroup priced the Pennsylvania Turnpike Commission's $365.14 million of Series of 2016 turnpike subordinate revenue refunding bonds.
The issue was priced to yield from 0.99% with a 5% coupon in 2018 to 3.34% with a 5% coupon in 2038; a 2017 maturity was offered as a sealed bid.
The deal is rated A3 by Moody's Investors Service and A-minus by Fitch Ratings.
Since 2006, the Commission has issued bonds an average of six times a year, selling about $13 billion. The largest issuance came in 2009 and 2014, when it offered $2.9 billion and $1.9 billion, respectively. The lows occurred in 2006 and 2007, when it issued $594 million and $532 million, respectively.
The Board of Trustees of the University of Illinois competitively sold $120.53 million of Series 2016A auxiliary facilities system refunding revenue bonds. Citi won the issue with a true interest cost of 3.47%.
The bonds were priced to yield from 0.59% with a 5% coupon in 2017 to 3.52% with a 4% coupon in 2036. The deal was rated Aa3 by Moody's and AA-minus by S&P.
Bank of America Merrill Lynch priced for retail Columbus, Ohio's $118.95million of Series 2016-1 and Series 2016-2 various purpose general obligation refunding bonds.
The $111.66 million of Series 2016-1 unlimited tax bonds were priced to yield from 0.50% with a 3% coupon in 2017 to 2.48% with a 4% coupon in 2031.
The $7.30 million of Series 2016-2 bonds limited tax bonds were priced to yield from 1.16% with a 3% in 2022 to 1.88% with a 5% coupon in 2027.
The issue is rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
BAML also priced the Connecticut Housing Finance Authority's $145 million of housing mortgage finance program bonds.
The $100.46 million of Series 2016 A-1 non-AMT bonds were priced at par to yield 2.40% in in 2026, at par to yield 2.875% in 2030, at par to yield 3.20% in 2035, at par to yield 3.50% in 2040 and as 4s to yield 1.77% for a 2045 planned amortization class bond. The $44.55 million of Series 2016 A-2 AMT bonds were priced at par to yield from 0.45% in 2016 to 2.70% and 2.75% in a split 2026 maturity.
The issue was rated triple-A by Moody's and S&P.
Raymond James priced the Lamar Consolidated Independent School District, Texas' $114.62 million of Series 2016A unlimited tax refunding bonds.
The issue was priced to yield 1.55% with a 2% coupon in 2024 and to yield from 1.96% with a 5% coupon in 2027 to 3.06% with a 4% in 2038.
The bonds were backed by the Permanent School Fund guarantee program and rated triple-A by Moody's and S&P.
RBC Capital Markets is set to price the Regents of the University of New Mexico's $152.87 million issue consisting of Series 2016A tax-exempt subordinate lien system refunding and improvement bonds and Series 2016B taxable subordinate lien system refunding revenue bonds.
The deal is rated Aa2 by Moody's and AA by Standard & Poor's.
Stifel is expected to price Cleveland, Ohio's $150.50 million of airport system revenue bonds consisting of Series A bonds and Series B forward delivery bonds. The issue is rated A2 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $3.12 billion to $9.08 billion on Wednesday. The total is comprised of $2.30 billion of competitive sales and $6.78 billion of negotiated deals.
Secondary Market
The yield on the 10-year benchmark muni general obligation was steady from 1.61% on Tuesday, while the 30-year muni yield was flat from 2.68%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were narrowly mixed on Wednesday. The yield on the two-year Treasury rose to 0.72% from 0.68% on Tuesday, while the 10-year Treasury yield gained to 1.73% from 1.72% and the 30-year Treasury bond yield decreased to 2.54% from 2.55%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 93.2% compared to 93.5% on Monday, while the 30-year muni to Treasury ratio stood at 104.9% versus 105.1%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,537 trades on Tuesday on volume of $8.44 billion.
