Top-shelf municipal bonds were weaker at mid-session, according to traders, ahead of the upcoming week's hefty new issue calendar.
Ipreo estimates volume at $11.5 billion, up from a revised total of $1.7 billion in the week before, according to updated data from Thomson Reuters. The supply slate consists of $8.9 billion of negotiated deals and $2.7 billion of competitive sales.
On Friday, the market wrapped up a short but action-packed week marked by a surprising presidential election outcome and the passage of billions of dollars in bond referendums.
Financial markets will be closed on Friday in observance of Veterans Day. Trading will resume on Monday.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose six to eight basis points from 1.86% on Wednesday, while the yield on the 30-year increased four to six basis points from 2.69%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were mixed on Thursday. The yield on the two-year dipped to 0.88% from 0.89% on Wednesday, the 10-year Treasury rose to 2.08% from 2.07% and the yield on the 30-year Treasury bond was unchanged from 2.88%.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 89.9% compared to 91.7% on Tuesday, while the 30-year muni to Treasury ratio stood at 93.6% versus 96.7%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 27,985 trades on Wednesday on volume of $8.84 billion.
Week's Most Actively Traded Issues
Some of the most actively traded issues by type in the week ended Nov. 10 were from Puerto Rico, Illinois and Florida, according to
In the GO bond sector, the Puerto Rico Commonwealth 5s of 2041 were traded 21 times. In the revenue bond sector, Chicago O'Hare International Airport 5s of 2041 were traded 42 times. And in the taxable bond sector, the Sumter Landing Community Development District, Fla., 4.172s of 2047 were traded 37 times.
Week's Most Actively Quoted Issues
Minnesota, New Jersey and California issues were among the most actively quoted bonds in the week ended Nov. 10, according to Markit.
On the bid side, the Minneapolis & St. Paul Metropolitan Airports Commission revenue 5s of 2020 were quoted by 593 unique dealers. On the ask side, the New Jersey Transportation Trust Fund Authority taxable 4.1s of 2031 were quoted by 189 unique dealers. And among two-sided quotes, the California taxable 7.3s of 2039 were quoted by 13 unique dealers.
Week's Primary Market
New issues were scarce this week, with offerings few and far between. Some deals were placed on the day-to-day calendar in the wake of post-election market price volatility.
Bank of America Merrill Lynch priced the Chesapeake Bay Bridge and Tunnel District, Va.'s $324.03 million of Series 2016 first tier general resolution revenue bonds.
The deal is rated Baa2 by Moody's Investors Service and BBB by S&P Global Ratings except for the 2041 and 2055 maturities, totaling $113.14 million, which are insured by Assured Guaranty Municipal and rated A2 by Moody's and AA by S&P.
Morgan Stanley priced the Virginia Port Authority's $144.05 million of Series 2016A taxable port facilities revenue refunding bonds.
The deal is rated A1 by Moody's and A-minus by S&P.
Additionally, BAML priced the Virginia Port's $98.87 million of Series 2016B tax-exempt port facilities revenue refunding bonds, subject to the alternative minimum tax.
The deal is rated A1 by Moody's and A-minus by S&P.
Citigroup priced the Bristol, Tenn., Industrial Development Board's $122 million of Series 2016A state sales tax revenue bonds and Series 2016B sales tax revenue capital appreciation bonds for the Pinnacle Project. The deal is unrated.
In the competitive arena, Pasadena, Calif., sold $122.07 million of Series 2016A electric revenue refunding bonds.
Bank of America Merrill Lynch won the deal with a true interest cost of 3.18%. The deal is rated AA-minus by S&P Global Ratings and AA by Fitch Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $5.24 billion to $14.64 billion on Thursday. The total is comprised of $3.68 billion of competitive sales and $10.96 billion of negotiated deals.
Tax-Exempt Money Market Fund Outflows
Tax-exempt money market funds experienced inflows of $1.14 million, bringing total net assets to $129.29 billion in the week ended Nov. 7, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $60.2 billion to $128.15 billion in the previous week.
The average, seven-day simple yield for the 238 weekly reporting tax-exempt funds dropped to 0.16% from 0.20% in the previous week.
The total net assets of the 868 weekly reporting taxable money funds increased $13.13 billion to $2.517 trillion in the week ended Nov. 8, after an inflow of $17.42 billion to $2.504 trillion the week before.
The average, seven-day simple yield for the taxable money funds held steady at 0.14% from the prior week.
Overall, the combined total net assets of the 1,106 weekly reporting money funds rose $14.27 billion to $2.647 trillion in the week ended Nov. 8 after inflows of $17.36 billion to $2.632 trillion in the prior week.
