Top-shelf municipal bonds were steady to stronger at mid-session, traders said, as more new supply swept into the market on Wednesday.
Secondary Market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.38% on Tuesday, while the yield on the 30-year muni was as much as one basis point lower from 2.02%, according to an early read of Municipal Market Data's triple-A scale.
U.S. Treasuries were stronger on Wednesday. The yield on the two-year Treasury dipped to 0.66% from 0.68% on Tuesday as the 10-year Treasury yield dropped to 1.46% from 1.52% and the yield on the 30-year Treasury bond decreased to 2.18% from 2.23%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 91.3% compared to 93.0% on Monday, while the 30-year muni to Treasury ratio stood at 90.5% versus 91.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 34,284 trades on Tuesday on volume of $7.92 billion.
Primary Market
Siebert Brandford Shank priced the New York City Transitional Finance Authority's $800 million of tax-exempt future tax secured subordinate Fiscal 2017 Subseries A-1 bonds for institutions after a two-day retail order period.
The issue was priced to yield from 0.69% with 4% and 5% coupons in a split 2019 maturity to 2.65% with a 2.5% coupon in 2038; a 2040 maturity was priced as 5s to yield 2.28% and a 2042 maturity was priced as 4s to yield 2.55%. A 2018 maturity was offered as a sealed bid.
On Tuesday, the issue was priced for retail to yield from 0.69% with 4% and 5% coupons in a split 2019 maturity to 2.44% with a 4% coupon in 2042; no retail orders were taken in the 2031-2034, 2039 or 2041 maturities.
The bonds are rated Aa1 by Moody's Investors Service and triple-A by S&P Global Ratings and Fitch Ratings; all three agencies have a stable outlook on the credit.
Also on Wednesday, the TFA competitively sold two separate taxable offerings totaling about $250 million.
RBC Capital Markets won the $186.9 million of Fiscal 2017 Series A Subseries A-2 future tax secured bonds with a true interest cost of 1.98%. Pricing information was not immediately available.
Bank of America Merrill Lynch won the $63.1 million of Fiscal 2017 Series A Subseries A-3 future tax secured bonds with a TIC of 2.58%. Pricing information was not immediately available.
Loop Capital Markets priced the Michigan Department of Transportation's $612.99 million of Series 2016 grant anticipation refunding bonds.
The issue was priced as 5s to yield from 0.78% in 2018 to 2.15% in 2027. The Garvee deal is rated A2 by Moody's and AA by S&P.
Ramirez & Co. priced the State of New York Mortgage Agency's $123.43 million of homeowner mortgage revenue bonds for institutions after holding a one-day retail order period.
The $100.34 million of Series 197 bonds, which are not subject to the alternative minimum tax, were priced at par to yield from 1.40% and 1.45% in a split 2022 maturity to 2.45% and 2.50% in a split 2029 maturity; a 2031 maturity was priced at par to yield 2.60%. A 2044 planned amortization class bond, with an average life of five years, was priced as 3 1/2s to yield 1.75%.
The $23.1 million of Series 198 AMT bonds were priced to yield from 0.95% and 1.05% in a split 2018 maturity to 1.75% in 2022. A split 2017 maturity was offered as sealed bids.
The SONYMA deal is rated Aa1 by Moody's.
Ramirez also priced Miami-Dade County's $309.5 million of Series 2016 subordinate special obligation refunding bonds.
The $219.51 million of current interest bonds were priced to yield from 0.75% with a 3% coupon in 2018 to 2.88% with a 4% coupon in 2040. The $89.999 million of capital appreciation bonds were priced to yield from 3.17% in 2031 to 3.54% in 2028. The deal is rated A-plus by S&P and Fitch.
In the short-term sector, BAML priced Oregon's $593.42 million of Series 2016A full faith and credit tax anticipation notes. The TANs were priced as 2s to yield 0.59% in 2017. The deal is rated MIG1 by Moody's, SP1-plus by S&P and F1-plus by Fitch.
In the competitive arena, Clark County, Nev., sold $285.41 million of Series 2016B limited tax GO bond bank refunding bonds additionally secured by pledged revenues.
JPMorgan Securities won the deal with a TIC of 2.19%. Pricing information was not immediately available. The deal is rated Aa1 by Moody's and AA by S&P.
Since 2006, Clark County has issued about $12.4 billion of debt, with the largest issuance occurring in 2006 when it sold $2.6 billion of securities. The county has slowed its issuance, not selling more than $700 million since 2010, after offer while offering more than $1 billion in each of the years from 2006 through 2010.
Palm Springs, Calif., is selling $100 million of 2008 Election Series D GOs this afternoon. The deal is rated Aa3 by Moody's and A-plus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $1.65 billion to $12.64 billion on Wednesday. The total is comprised of $4.41 billion of competitive sales and $8.23 billion of negotiated deals.
