Municipal bond traders are set to see the first of the week's $5.5 billion new issue calendar come to market on Wednesday.
Secondary Market
Treasuries were stronger on Wednesday. The yield on the two-year Treasury declined to 0.72% from 0.73% on Tuesday, the 10-year Treasury yield dropped to 1.52% from 1.54% and the yield on the 30-year Treasury bond decreased to 2.21% from 2.23%.
Top-rated municipal bonds finished stronger Tuesday. The yield on the 10-year benchmark muni general obligation dropped one basis point to 1.44% from 1.45% on Friday, while the yield on the 30-year fell one basis point to 2.13% from 2.14%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 93.5% compared to 90.9% on Friday, while the 30-year muni to Treasury ratio stood at 95.1% versus 94.3%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,008 trades on Tuesday on volume of $6.78 billion.
Primary Market
In the competitive arena on Wednesday, Washington state is selling about $225 million of motor vehicle future tax general obligation bonds in two separate offerings consisting of around $90 million of Series 2017C GO SR 520 Corridor program toll revenue bonds and approximately $134 million of Series 2017B GOs.
The deals are rated Aa1 by Moody's and AA-plus by S&P and Fitch.
In the negotiated sector, Wells Fargo Securities is set to price Austin, Texas' $187 million of Series 2016 public improvement and refunding bonds, Series 2016 certificates of obligation and Series 2016 public property finance contractual obligations on Wednesday.
The deal is rated triple-A by Moody's Investors Service, S&P Global Ratings and Fitch Ratings.
Since 2006, Austin has sold about $6.95 billion of debt, with the largest issuance occurring in 2015 when it sold about $1 billion of bonds. In the same period, the lowest amount it has issued in a year was 2007, when it came to market with $287 million.
RBC Capital Markets is expected to price Hamilton County, Ohio's $139 million of Series 2016 healthcare improvement and refunding revenue bonds for the Life-Enriching Communities project on Wednesday.
The deal is rated BBB-minus by Fitch.
On Thursday, the largest negotiated sale of the week is coming from Texas Transportation Commission. Morgan Stanley will price the commission's $615.26 million of state highway fund first tier revenue bonds.
Jefferies is expected to price the TTC's $90 million of state highway fund first tier revenue refunding put bonds, also on Thursday.
Jefferies is also expected to price the New York Counties Tobacco Trust VI's $292.16 million of Series 2016 tobacco settlement pass-through bonds on Thursday.
Bank of America Merrill Lynch is set to price the California's Health Facilities Financing Authority's $306 million of revenue bonds for Providence St. Joseph Health on Thursday. The deal is rated Aa3 by Moody's and AA-minus by S&P and Fitch.
On Thursday, the Dormitory Authority of the State of New York is slated to sell five competitive issues totaling roughly $704.68 million on Thursday. The DASNY deals are rated Aa1 by Moody's and triple-A by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.24 billion to $15.01 billion on Wednesday. The total is comprised of $4.50 billion of competitive sales and $10.51 billion of negotiated deals.
