Top-shelf municipal bonds were weaker at mid-session, according to traders, who were seeing the last of the week's big deals come to market.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose as much as one basis point from 1.56% on Wednesday, while the yield on the 30-year increased by as much as two basis points from 2.28%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were narrowly mixed on Thursday. The yield on the two-year Treasury declined from 0.74% from 0.75% on Wednesday, the 10-year Treasury yield rose to 1.70% from 1.69% and the yield on the 30-year Treasury bond increased to 2.47% from 2.44%.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 92.4% compared to 90.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 93.3% versus 92.4%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 39,919 trades on Wednesday on volume of $17.16 billion.
Primary Market
Barclays Capital priced the Illinois Finance Authority's $112.34 million of Series 2016 revenue bonds for the OSF Healthcare System.
The issue was priced to yield from 1.49% with a 5% coupon in 2021 to 3.50% with a 3.25% coupon and 3.29% with a 4% coupon in a split 2030 maturity. The deal is rated A2 by Moody's Investors Service and A by S&P Global Ratings.
Goldman Sachs is set to price the San Francisco Airport Commission's $881.73 million of Series 2016B second series revenue bonds subject to the alternative minimum tax, Series 2016C non-AMT governmental purpose and refunding bonds and Series 2016D non-AMT governmental purpose bonds.
Since 2006, the airport commission of the city and county of San Francisco has sold about $7.47 billion of debt, with the largest issuance occurring in 2008 when it sold about $1.5 billion. The commission did not sell any bonds in 2007 or 2015.
Ziegler is expected to price the Tarrant County Cultural Education Facilities Finance Corp.'s $120.03 million of Series 2016 retirement facility revenue bonds for the Air Force Village Obligated Group.
Morgan Stanley is set to price the Board of Trustees of the University of Illinois's $116.14 million of refunding certificates of participation.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $3.46 billion to $12.29 billion on Thursday. The total is comprised of $2.75 billion of competitive sales and $9.54 billion of negotiated deals.
Tax-Exempt Money Market Fund Outflows
Tax-exempt money market funds experienced outflows of $5.27 billion, bringing total net assets to $145.06 billion in the week ended Sept 12, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $2.57 billion to $150.33 billion in the previous week.
The average, seven-day simple yield for the 254 weekly reporting tax-exempt funds rose to 0.18% from 0.16% in the previous week.
The total net assets of the 888 weekly reporting taxable money funds increased $13.91 billion to $2.527 trillion in the week ended Sept. 13, after an outflow of $42.80 billion to $2.513 trillion the prior before.
The average, seven-day simple yield for the taxable money funds remained at 0.11% from the week before.
Overall, the combined total net assets of the 1,142 weekly reporting money funds rose $8.64 billion to $2.672 trillion in the period ended Sept. 13, which followed an outflow of $45.38 billion to $2.664 trillion.
