Top-quality municipal bonds were stronger at mid-session, as deals from Virginia and Georgia issuers hit the market.

Secondary market
The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 1.94% on Tuesday, while the 30-year GO yield dropped as much as one basis point from 2.74%, according to a read of Municipal Market Data's triple-A scale.

Treasuries were little changed on Wednesday. The yield on the two-year Treasury was flat from 1.35% on Tuesday, the 10-year Treasury yield was steady from 2.26% and the yield on the 30-year Treasury bond decreased to 2.84% from 2.85%.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 85.8%, compared with 86.4% on Monday, while the 30-year muni to Treasury ratio stood at 98.0% versus 96.5%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,086 trades on Tuesday on volume of $10.16 billion.

Primary market
In the competitive arena on Wednesday, the Virginia College Building Authority sold $598.89 million of educational facilities 21st Century College and equipment program revenue bonds in three separate sales.

Bank of America Merrill Lynch won the $352.25 million of Series 2017C Tranche 2 bonds with a true interest cost of 3.18%. The issue was priced to yield from 2.13% with a 5% coupon in in 2028 to 3.04% with a 4% coupon in 2037.

BAML also won the $146.12 million of Series 2017C Tranche 1 bonds with a TIC of 1.63%. The issue was priced as 5s to yield from 0.82% in 2018 to 1.99% in 2027.

The authority was also selling $100.52 million of Series 2017D taxable bonds. Information was not immediately available.

The deals are rated Aa1 by Moody’s Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.

Since 2007, the Virginia CBA has sold about $8.5 billion of debt with the most issuance occurring in 2009 when it issued $1.69 billion of bonds. It sold the least amount of securities in 2008, when it issued $144.1 million of bonds.

In the negotiated sector, Bank of America Merrill Lynch priced the Georgia State Road and Tollway Authority’s $350.4 million of Series 2017A and B federal highway grant anticipation revenue and refunding revenue bonds and Series 2017A and B federal highway grant reimbursement revenue and refunding revenue bonds.

The $51.33 million of Series 2017A anticipation revenue bonds were priced as 5s to yield from 1.02% in 2018 to 2.62% in 2029.

The $231.64 million of Series 2017B anticipation revenue refunding bonds were priced as 5s to yield from 1.02% in 2018 to 1.40% in 2021.

The $12.81 million of Series 2017A reimbursement revenue bonds were priced to yield from 0.99% with a 5% coupon in 2018 to 2.59% with a 5% coupon in 2029.

The $54.63 million of Series 2017B reimbursement revenue refunding bonds were priced as 5s to yield from 0.99% in 2018 to 1.37% in 2021.

The anticipation bonds are rated A2 by Moody’s, AA by S&P and A-plus by Fitch while the reimbursement bonds are rated A1 by Moody’s, AA by S&P and A-plus by Fitch.

Frost Bank priced the United Independent School District, Texas’ $103.64 million of Series 2017 unlimited tax school building bonds.

The issue is priced to yield from 1.24% with a 4% coupon in 2020 to 2.92% with a 5% coupon in 2039. A 2042 maturity was priced as 5s to yield 2.97% and a split 2047 maturity was priced as 4s to yield 3.44% and as 5s to yield 3.03%.

The deal, which is backed by the Permanent School Fund guarantee program, is rated triple-A by Moody’s and Fitch.

Barclays Capital is expected to price Massachusetts’ consolidated loan of 2014 Series D multi-modal Subseries D-2 general obligation bonds. The deal is rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.

Jefferies is expected to price the Alaska Housing Finance Corp.’s $142.96 million of Series 2017A state capital project bonds. The deal is rated AA-plus by S&P and Fitch.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $2.8 billion to $6.38 billion on Tuesday. The total is comprised of $2.62 billion of competitive sales and $3.76 billion of negotiated deals.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.