Top-quality municipal bonds finished stronger on Wednesday, according to traders, as another big wave of issuance sweep over the market.
Goldman Sachs priced the Trustees of California State University's $815.31 million of Series 2017A tax-exempt systemwide revenue bonds for institutions on Wednesday after a one-day retail order period.
The deal was priced for institutions to yield from 0.72% with a 3% coupon in 2017 to 3.21% with a 5% coupon in 2038; a split 2042 maturity was priced as 4s to yield 3.60% and as 5s to yield 3.27%; a 2047 maturity was priced as 5s to yield 3.32%.
The deal is rated Aa2 by Moody's Investors Service and AA-minus by S&P Global Ratings.
Citigroup priced the state of Oregon's $418.1 million of tax-exempt general obligation bonds for various purposes.
The $238.93 million of Series 2017A tax-exempt Article XI-Q state project bonds were priced to yield from 1.09% with a 5% coupon in 2019 to 3.11% with a 5% coupon in 2037; a 2042 maturity was priced as 5s to yield 3.16%.
The $106.17 million of Series 2017C tax-exempt Article XI-M seismic projects bonds were priced to yield from 1.10% with a 5% coupon in 2019 to 3.11% with a 5% coupon in 2037.
The $24.3 million of Series 2017D tax-exempt Article XI-N seismic projects bonds were priced to yield from 1.10% with a 3% coupon in 2019 to 3.11% with a 5% coupon in 2037.
The $48.72 million of Series 2017E tax-exempt refunding Article XI-J alternative energy projects bonds were priced to yield from 1.07% with a 2% coupon in 2019 to 2.98% with a 4% coupon in 2031.
The deal is rated Aa1 by Moody's and AA-plus by S&P and Fitch Ratings.
Wells Fargo Securities priced the Rector and Visitors of the University of Virginia's $123.44 million of Series 2017B general revenue pledge refunding bonds.
The issue was priced as 4s to yield 3.42% in 2040, as 5s to yield 3.09% and as 4s to yield 3.46% in a split 2044 maturity and as 5s to yield 3.11% in 2046. The deal is rated triple-A by Moody's, S&P and Fitch.
In the competitive sector, the Fairfax County Water Authority, Va., sold $201.59 million of Series 2017 water revenue and refunding revenue bonds.
Bank of America Merrill Lynch won the offering with a true interest cost of 3.31%. The issue was priced to yield from 0.90% with a 5% coupon in 2018 to 3.05% with a 5% coupon in 2047. The deal is rated triple-A by Moody's, S&P and Fitch.
The state of Washington competitively sold $103.13 million of Series 2017A state and local agency real and personal property certificates of participation on Wednesday.
BAML won the offering with a true interest cost of 3.24%. The issue was priced as 5s to yield from 1.10% in 2018 to 3.42% in 2038. The deal is rated Aa2 by Moody's.
In the short-term competitive sector, the New York Metropolitan Transportation Authority sold $700 million of notes in two separate sales on Wednesday.
Seven groups won the MTA's $500 million of Series 2017 Subseries 2017A-1 transportation revenue bond anticipation notes.
Morgan Stanley won $100 million with a bid of 2% and a premium of $554,000, an effective rate of 0.801430, Morgan Stanley took another $100 won with a bid of 2% and a premium of $556,000, an effective rate of 0.797120%, and Morgan Stanley won $50 million with a bid of 2% and a premium of $283,000, an effective rate of 0.775600%; BAML won $100 million with a bid of 5% and a premium of $1,941,647, an effective rate of 0.799020%; JPMorgan Securities won $50 million with a bid of 2% and a premium of $277,500, an effective rate of 0.799270%; Barclays Capital won $25 million with a bid of 3% and a premium of $254,000, an effective rate of 0.801790%; Citi won $25 million with a bid of 2% and a premium of $138,501, an effective rate of 0.801420%; RBC Capital Markets won $25 million with a bid of 2% and a premium of $138,500, an effective rate of 0.801%430; and U.S. Bancorp won $25 million with a bid of 2% and a premium of $138,250, an effective rate of 0.803580%.
Five groups won the MTA's $200 million of Series 2017 Subseries 2017A-2 transportation revenue BANs.
BAML won $50 million with a bid of 5% and a premium of $1,310,000, an effective rate of 0.840650%; JPMorgan won $50 million with a bid of 2% and a premium of $366,000, an effective rate of 0.837100%; TD Securities won $50 million with a bid of 2% and a premium of $365,500, an effective rate of 0.839180%; Goldman Sachs won $25 million with a bid of 2% and a premium of $182,750, an effective rate of 0.839180%; Morgan Stanley won $25 million with a bid of 3% and a premium of $339,750 premium, an effective rate of 0.842280%.
The BANs are rated MIG1 by Moody's, SP1-plus by S&P and F1 by Fitch.
Since 2007, the N.Y. MTA has sold over $30.78 billion of bonds, with the most issuance occurring in 2012 when it sold $6.69 billion of debt and the least amount taking place in 2007 when it sold $1.27 billion of securities.
Secondary Market
The 10-year benchmark muni general obligation yield fell three basis points to 2.25% from 2.28% on Tuesday, while the yield on the 30-year GO dropped three basis points to 3.03% from 3.06%, according to the final read of Municipal Market Data's triple-A scale.
U.S. Treasuries were also stronger on Wednesday. The yield on the two-year Treasury declined to 1.15% from 1.17% on Tuesday, while the 10-year Treasury dropped to 2.35% from 2.39%, and the yield on the 30-year Treasury bond decreased to 2.96% from 3.02%.
The 10-year muni to Treasury ratio was calculated at 95.9% on Wednesday compared to 95.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 102.4%, versus 101.4%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 43,994 trades on Tuesday on volume of $9.50 billion.
