Traders saw a second wave of new supply hit the market Wednesday as institutional pricings were released for the University of California and the N.Y. Metropolitan Transportation Authority.
Meanwhile, prices on top-shelf municipal bonds were steady at mid-session, according to traders.
Primary Market
Barclay's priced the UC Regent's $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 priced from 0.64% in a split 2017 maturity with 2% and 5% coupons to 3.60% with a 3.5% coupon in 2035; a 2040 term bond was priced as a split maturity to yield from 3.28% with a 5% coupon to 3.70% with a 4% coupon. The 2016 maturity was offered as a sealed bid. The series is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
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, JP Morgan Securities priced Macomb County, Mich.'s $263.56 million of taxable retiree health care bonds. The limited tax general obligation bonds 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.
On Wednesday, RBC Capital Markets will hold 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 deal will be priced for institutions on Thursday. The bonds are rated Aa2 by Moody's and AA by S&P and Fitch.
Also expected this week are Dallas' $589 million of taxable and tax-exempt waterworks and sewer system revenue refunding bonds to be priced by Cabrera Capital Markets; Connecticut's $500 million of taxable and tax-exempt GOs to be priced by Citigroup Global Markets; the San Francisco Public Utilities Commission's $450 million of water system bonds to be priced by JPMorgan Securities; and the Michigan Finance Authority's $312 million of student loan asset-backed notes to be priced by Bank of America Merrill Lynch.
Secondary Market
Prices of top-quality munis were flat at midday. The yield on the 10-year benchmark muni general obligation was unchanged from Monday at 2.18%, while the yield on 30-year GO was flat at 3.00%, according to a read of Municipal Market Data's triple-A scale.
Treasury prices were mixed on Wednesday. The yield on the two-year Treasury note rose to 0.69% from 0.68% on Tuesday, while the 10-year yield was flat at 2.13% and the 30-year yield fell to 2.71% from 2.72%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 101.6% versus 99.4% on Monday, while the 30-year muni to Treasury ratio stood at 109.8% compared to 107.9%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.447 billion to $13.740 billion on Wednesday. The total is comprised of $2.456 billion competitive sales and $11.284 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,758 trades on Tuesday on volume of $7.303 billion.
Most active on Tuesday, based on the number of trades, was the 2010-issued New York City Fiscal 2011 Series F taxable GOs, Subseries F-1, Build America Bonds, 5.237% BABs of 2021, which traded 188x times at an average price of 115.052 with an average yield of 2.765%; (initial offering price of 100.00 and an initial offering yield of yield of 5.237%).
