Top quality municipal bonds were weaker at midday, according to traders, as deals from New York City swept into the marketplace.

Secondary market
The yield on the 10-year benchmark muni general obligation rose as much as two basis points from 1.93% on Tuesday, while the 30-year GO yield gained as much as one basis point from 2.73%, according to a read of Municipal Market Data's triple-A scale.

Treasuries were little changed on Wednesday. The yield on the two-year Treasury was flat from 1.39% on Tuesday, the 10-year Treasury yield was steady from 2.33% and the yield on the 30-year Treasury bond increased to 2.92% from 2.91%.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 83.0%, compared with 84.4% on Monday, while the 30-year muni to Treasury ratio stood at 93.9% versus 95.0%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 39,595 trades on Tuesday on volume of $9.45 billion.

Primary market
Bank of America Merrill Lynch priced New York City’s $900.56 million of Fiscal 2018 Series A general obligation bonds for institutions on Wednesday after holding a two day retail order period. The deal was increased from the originally planned $800 million.

The issue was priced for institutions to yield from 0.91% with a 4% coupon in 2018 to 2.29% with a 5% coupon in 2028.

On Tuesday, the bonds were priced for retail to yield from 0.90% with a 4% coupon in 2018 to 2.26% with a 5% coupon in 2028.

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings. All three rating agencies assign a stable outlook to the bonds.

The city also competitively sold $60 million of Fiscal 2002 Series A Subseries A-10 taxable GOs as a remarketing. Morgan Stanley won the bonds with a true interest cost of 1.7981%

Since 2007, the Big Apple has sold $48.77 billion of securities, with the largest issuance occurring in 2008 when it sold $6.69 billion. The city saw a low year of issuance in 2011 when it sold $2.66 billion.

On Thursday, HJ Sims is expected to price the District of Columbia’s $129.16 million of Series 2017A revenue bonds for the Ingleside at Rock Creek project and Series 2017B convertible subordinate entrance fee principal redemption bonds.

RBC Capital Markets is expected to price the Reading School District, Pa.’s $101.7 million of Series 2017 GOs on Thursday.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $210.7 million to $6.51 billion on Wednesday. The total is comprised of $2.33 billion of competitive sales and $4.19 billion of negotiated deals

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