Top quality municipal bonds were steady to weaker at mid-session, traders said, with yields on some maturities rising by as much as two basis points as more volume swept into the market.
Secondary Market
The yield on the 10-year benchmark muni general obligation was flat from 1.45% on Tuesday, while the yield on the 30-year muni rose by as much as two basis points from 2.17%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were unchanged on Wednesday. The yield on the two-year Treasury rose to 0.68% from 0.67% on Tuesday, the 10-year Treasury yield gained to 1.56% from 1.54% and the yield on the 30-year Treasury bond increased to 2.30% from 2.29%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 94.3% compared to 94.9% on Monday, while the 30-year muni to Treasury ratio stood at 94.9% versus 95.2%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 37,369 trades on Tuesday on volume of $8.89 billion.
Primary Market
In the competitive arena on Wednesday, Connecticut sold two separate issues totaling $500 million.
Morgan Stanley won the $250 million of Series 2016D tax-exempt general obligation bonds with a true interest cost of 2.53%. Morgan Stanley also won the $250 million of Series 2016A taxables GOs with a TIC of 2.12%. Pricing information was not immediately available.
Both deals are rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
Clark County, Nev., competitively sold $251.58 million of Series 2016 limited tax GO water reclamation refunding bonds additionally secured by pledged revenues.
Bank of America Merrill Lynch won the bonds with a TIC of 2.64%. Pricing information was not immediately available. The deal is rated Aa1 by Moody's and triple-A by S&P.
In the negotiated sector, BAML priced Miami-Dade County, Fla.'s $316.73 million of Series 2016A aviation revenue refunding bonds not subject to the alternative minimum tax.
The issue was priced as 5s to yield from 1.31% in 2022 to 2.58% in 2036 and to yield 2.69% in a 2041 term bond. The deal is rated A by S&P and Fitch and AA-minus by Kroll Bond Rating Agency.
Since 2006, Miami-Dade County has issued $16.87 billion of securities with the largest issuance coming in 2010 when it sold $2.38 billion. The county has issued more than $1 billion ever year, except for 2006 and 2011.
Stifel is expected to price Wisconsin's $598.13 million of taxable general fund annual appropriation refunding bonds of 2016, Series A and B. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
Citigroup is expected to price the San Diego Regional Transportation Commission's $325 million of Series 2016A sales tax revenue binds. The deal is rated triple-A by S&P and Fitch.
RBC Capital Markets is set to price Hamilton County, Ohio's $321.73 million of Series 2016A sales tax refunding bonds. The deal is rated A1 by Moody's, AA-minus by S&P and A-plus by Fitch.
Siebert Brandford Shank received the written award on the Pennsylvania Turnpike Commission's $313.99 million of Series 2016A oil franchise tax senior revenue refunding bonds and Series 2016B oil franchise tax subordinated revenue refunding bonds.
The $198.6 million of Series 2016A bonds were priced to yield from 0.63% with a 4% coupon in 2017 to 2.23% with a 5% coupon in 2032. The $115.4 million of Series 2016B bonds were priced to yield from 0.85% with a 4% coupon to 1.67% with a 5% coupon in 2023 and from 2.06% with a 5% coupon in 2026 to 2.47% with a 5% coupon in 2032. The deal is rated Aa3 by Moody's and AA by Fitch.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $4.01 billion to $13.52 billion on Wednesday. The total is comprised of $4.27 billion of competitive sales and $9.25 billion of negotiated deals.
