Top-rated municipal bonds were stronger at midday, according to traders, as more volume hit the market on Wednesday.
Secondary Market
The yield on the 10-year benchmark muni general obligation fell one to three basis points from 2.33% on Tuesday, while the 30-year GO yield dropped one to three basis points from 3.13%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were stronger on Wednesday. The yield on the two-year was unchanged from 1.26% on Tuesday, while the 10-year Treasury yield declined to 2.39% from 2.43%, and the yield on the 30-year Treasury bond decreased to 3.01% from 3.04%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 95.8%, compared with 96.3% on Monday, while the 30-year muni to Treasury ratio stood at 102.6%, versus 102.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 42,580 trades on Tuesday on volume of $11.46 billion.
Primary Market
In the competitive arena on Wednesday, Louisiana sold $189.12 million of Series 2017A general obligation bonds.
Bank of America Merrill Lynch won the bonds with a true interest cost of 3.45%. The issue was priced to yield from 1.03% with a 5% coupon in 2018 to 3.80% with a 4% coupon in 2035; a 2037 maturity was priced as 4s to yield 3.91%.
The deal is rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
The New Jersey Educational Facilities Authority sold $128.32 million of Series 2017C revenue bonds for Princeton University.
Morgan Stanley won the bonds with a TIC of 3.50%. Pricing information was not immediately available.
The deal is rated triple-A by Moody's and S&P.
BAML priced the North Carolina Turnpike Authority's $203.09 million of Series 2017 senior lien turnpike revenue refunding bonds for the Triangle Expressway System.
The issue was priced to yield from 1.42% with a 5% coupon in 2019 to 3.47% with a 5% coupon in 2032. A term bond in 2039 was priced to yield 3.58% with a 5% coupon. The 2018 maturity was offered as a sealed bid.
The deal is rated BBB by S&P and BBB-minus by Fitch with the exception of the 2024, 2026, 2028, 2029, 2031 and 2039 maturities, which are insured by Assured Guaranty Municipal Corp., and are rated A2 by Moody's and AA by S&P.
Goldman Sachs priced the Oregon Department of Administration Services' $157.18 million of tax-exempt state lottery revenue bonds.
The $93.28 million of Series 2017A tax-exempts were priced as 5s to yield from 2.59% in 2028 to 3.18% in 2037. The $63.9 million of Series 2017C tax-exempt refunding bonds were priced to yield from 1.50% with a 4% coupon in 2021 to 2.93% with a 5% coupon in 2032.
The deal is rated Aa2 by Moody's and AAA by S&P.
Since 2007, the Beaver State has sold over $5 billion of bonds, with the most issuance prior to this year occurring in 2013 when it offered almost $712 million of debt. It sold the least amount of securities in 2010: around $146 million.
Piper Jaffray is expected to price the Palomar Community College District, Calif.'s $139 million of Series 2017D general obligation bonds. The deal is rated Aa1 by Moody's and AA by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $332.7 million to $9.66 billion on Wednesday. The total is comprised of $3.63 billion of competitive sales and $6.03 billion of negotiated deals.
