Top-shelf municipal bonds were weaker at mid-session, according to traders, who were wrapping up their business ahead of Thursday's Thanksgiving holiday and an over $9 billion supply slate next week.
While the market will be open for an abbreviated session on Friday, desks will be minimally staffed.
Ipreo estimates volume for next week at $9.11 billion, up from revised $459.7 million sold this week, according to updated data from Thomson Reuters.
The calendar is composed of $6.72 billion of negotiated deals and $2.39 billion of competitive sales.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose three to five basis points from 2.33% on Tuesday, while the yield on the 30-year increased as much as two basis points from 3.08%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries were weaker on Wednesday. The yield on the two-year rose to 1.13% from 1.09% on Tuesday, the 10-year Treasury gained to 2.40% from 2.32%, while the yield on the 30-year Treasury bond increased to 3.07% from 3.01%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 100.5% compared to 98.6% on Monday, while the 30-year muni to Treasury ratio stood at 102.4% versus 101.8%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 46,492 trades on Tuesday on volume of $12.79 billion.
Primary Market
There were very few negotiated deals hitting the market this week, with no competitive sales larger than $100 million on this week's calendar.
JPMorgan Securities priced the State of New York Mortgage Agency's $83.05 million of homeowner mortgage revenue alternative minimum tax and non-AMT bonds on Tuesday.
The $64.03 million of Series 200 non-AMT bonds were priced at par to yield 3.90% in 2036 and as 3 1/2s to yield 2.35% as a PAC bond in in 2045. The $19.02 million of Series 201 AMT bonds were priced at par to yield from 1.10% in 2017 to 3.40% in 2027 and 3.85% in 2031. The SONYMA deal is rated Aa1 by Moody's Investors Service.
Bank of America Merrill Lynch priced the Pottsville Hospital Authority, Pa.'s $53.26 million of Series 2016B hospital revenue bonds for the Lehigh Valley Health Network. The issue was priced to as 4s to yield 4.27% in 2036, as 4 1/4s to yield 4.37% and as 5s to yield 4.04% in a split 2041 maturity and as 5s to yield 4.08% in 2045. The deal is rated A1 by Moody's and A-plus by S&P Global Ratings.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $4.52 billion to $14.40 billion on Wednesday. The total is comprised of $3.68 billion of competitive sales and $10.71 billion of negotiated deals.
