MWAA’s Dulles Toll Road deal prices; more muni supply on the way next week

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The last of the week’s big new issues came to market on Thursday, led by a toll road deal as market participants look forward to next week’s chunky new-issue calendar. The market will see a hefty slate next week, with some large deals already on the calendar including a $900 million competitive sale from Pennsylvania and an $851 million negotiated deal from the Kansas City Industrial Development Authority in Missouri.

Primary market
Ramirez & Co. priced the Metropolitan Washington Airports Authority’s $164.31 million of Series 2019A (A2/A-/NR) first senior lien revenue refunding bonds for Dulles Metrorail and capital improvements.

The issue was priced as 5s to yield from 2.11% in 2031 to 2.49% in 2039; a $71.87 million 2044 term yielded 2.63%

Loop Capital Markets, RBC Capital Markets and Wells Fargo Securities were co-managers. Frasca & Associates was the municipal advisor while Nixon Peabody was the bond counsel. Underwriters distributed a pre-marketing scale on Wednesday.

Proceeds will be used to refund all of the outstanding Dulles Toll Road’s Series 2002A first senior lien revenue bonds.

BofA Securities priced Charlotte, North Carolina’s (Aa3/NR/AA-) $178.94 million of airport revenue bonds, consisting of Series 2019A bonds not subject to the alternative minimum tax and Series 2019B AMT bonds.

Barclays Capital priced the University of Delaware’s (Aa1/AA+/NR) $113.295 million of Series 2019 tax-exempt bonds.

BofA received the official award on Los Angeles County, California’s (MIG1/AP1+/F1+) $700 million of tax and revenue anticipation notes.

BofA also received the written award on Clark County, Nevada’s $348.33 million of Series 2019A (Aa3/A+/NR) airport system subordinate lien refunding revenue Non-AMT bonds and Series 2019B (Aa2/AA-/NR) airport system revenue AMT bonds for McCarran International Airport.

RBC Capital Markets received the official award on the Arizona Industrial Development Authority’s (BAM: NR-Baa3/AA-NR/NR) $109.405 million of Series 2019A tax-exempt and Series 2019B taxable student housing revenue bonds.

In the competitive arena, Ventura County, California, (MIG1/SP1+/NR) sold $160 million of tax and revenue anticipation notes.

Citigroup won the TRANs with an effective rate of 1.202182%.

Thursday’s bond sales

Click here for the MWAA pricing

Click here for the MWAA pre-marketing scale

Click here for the Charlotte pricing

Click here for the Ventura County sale

Click here for the Los Angeles note award

Click here for the Los Angeles note pricing

Click here for the Clark County award

Click here for the Clark County pricing

Click here for the Arizona IDA award

Muni money market funds see outflows
Tax-exempt municipal money market fund assets fell $1.45 billion, with total net assets dropping to $136.13 billion in the week ended June 3, according to the Money Fund Report, a publication of Informa Financial Intelligence.
The average seven-day simple yield for the 190 tax-free and municipal money-market funds increased to 1.11% from 0.99% in the previous week.

Taxable money-fund assets increased $18.95 billion in the week ended June 4, bringing total net assets to $2.972 trillion.

The average, seven-day simple yield for the 806 taxable reporting funds rose to 2.04% from 2.02% in the prior week.

Overall, the combined total net assets of the 996 reporting money funds rose $10.08 billion to $3.111 trillion in the week ended June 4.

Secondary market
Munis were weaker on the MBIS benchmark scale on Thursday, which showed yields rising by three basis points in the 10-year maturity and by less than a basis point in the 30-year maturity. High-grade munis were also weaker, with MBIS’ AAA scale showing yields up by one basis point in the 10-year maturity and by less than a basis point in the 30-year maturities.

On Refinitiv Municipal Market Data’s AAA benchmark scale, the yield on the 10-year GO was steady at 1.64% and the yield on the 30-year muni was unchanged at 2.33%.

The 10-year muni-to-Treasury ratio was calculated at 77.1% while the 30-year muni-to-Treasury ratio stood at 88.9%, according to MMD.

Treasuries were stronger as stocks traded higher. The Treasury three-month was yielding 2.312%, the two-year was yielding 1.891%, the five-year was yielding 1.893%, the 10-year was yielding 2.132% and the 30-year was yielding 2.621%.

“The ICE Muni Yield Curve is within one-half basis point of yesterday’s levels, lagging the decline in Treasury market yields today,” ICE Data Services said in a Thursday market comment. “High-yield and tobacco sectors are quiet and stable. Taxables are down two basis points in the 10-year and almost five basis points in the 30-year maturities.”

Previous session's activity
The MSRB reported 43,659 trades Wednesday on volume of $16.69 billion. The 30-day average trade summary showed on a par amount basis of $12.75 million that customers bought $6.29 million, customers sold $4.21 million and interdealer trades totaled $2.25 million.

California, Texas and New York were most traded, with the Golden State taking 14.109% of the market, the Lone Star State taking 11.619% of the market, and the Empire State taking 11.071%.

The most actively traded security was the Matagorda County Navigation District, Texas, 2001A refunding revenue 2.6s of 2029, which traded 21 times on volume of $47.53 million.

Treasury auctions announced
The Treasury Department announced these auctions:

  • $16 billion 29-year 11-month 2 7/8% bonds selling on June 13;
  • $24 billion 9-year 11-month 2 3/8% notes selling on June 12;
  • $38 billion three-year notes selling on June 11;
  • $36 billion 182-day bills selling on June 10; and
  • $36 billion 91-day bills selling on June 10.

Treasury auctions bills
The Treasury Department Thursday auctioned $40 billion of four-week bills at a 2.290% high yield, a price of 99.821889. The coupon equivalent was 2.332%. The bid-to-cover ratio was 2.75.

Tenders at the high rate were allotted 5.03%. The median rate was 2.260%. The low rate was 2.220%.

Treasury also auctioned $35 billion of eight-week bills at a 2.300% high yield, a price of 99.642222. The coupon equivalent was 2.347%. The bid-to-cover ratio was 2.73.

Tenders at the high rate were allotted 20.43%. The median rate was 2.280%. The low rate was 2.240%.

Gary E. Siegel contributed to this report.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Ziad Saba at 212-803-6079 for more information.

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Primary bond market Secondary bond market Municipal bond funds Metropolitan Washington Airports Authority City of Charlotte, NC County of Los Angeles, CA Clark County Nevada State of California State of Texas State of New York