Municipal bond traders are set to see the week’s largest deal come to market on Thursday — the New Jersey Economic Development Authority’s $595 million sale.

Secondary market
U.S. Treasuries were stronger on Thursday. The yield on the two-year Treasury dipped to 1.29% from 1.30% on Wednesday, the 10-year Treasury yield declined to 2.09% from 2.10% and the yield on the 30-year Treasury bond decreased to 2.71% from 2.72%.

Top-quality municipal bonds ended mixed on Wednesday. The yield on the 10-year benchmark muni general obligation fell one basis point to 1.84% from 1.85% on Tuesday, while the 30-year GO yield was unchanged from 2.68%, according to the final read of Municipal Market Data's triple-A scale.

On Wednesday, the 10-year muni-to-Treasury ratio was calculated at 87.4%, compared with 89.2% on Wednesday, while the 30-year muni-to-Treasury ratio stood at 98.5% versus 99.6%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 34,984 trades on Wednesday on volume of $8.2 billion.

Primary Market
Morgan Stanley is expected to price the New Jersey EDA’s $595 million of motor vehicle surcharges subordinate revenue and taxable bonds on Thursday.

The deal is rated Baa2 by Moody’s Investors Service, but some of the bonds are expected to be insured by Build America Mutual.

Since 2007, the N.J. EDA has issued $21.67 billion of securities, with the most issuance taking place in 2008 when it sold $3.22 billion. The authority saw a low of $850 million in 2009 the only year during that span it did not eclipse the $1 billion mark. Thursday’s sale puts the EDA over the $1 billion mark for this year.

Also on Thursday, Goldman Sachs is on the docket to price the Regents of the University of Texas’ $350 million of taxable system revenue bonds.

The deal is rated triple-A by Moody’s, S&P Global Ratings, and Fitch Ratings, and it is anticipated to come as a bullet maturity in 2047.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $293.8 million to $8.85 billion on Thursday. The total is comprised of $5.35 billion of competitive sales and $3.51 billion of negotiated deals.

Tax-exempt money market funds see outflows
Tax-exempt money market funds experienced outflows of $1.27 billion, bringing total net assets to $128.69 billion in the week ended Sept. 4, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an outflow of $206.4 million to $129.96 billion in the previous week.

The average, seven-day simple yield for the 234 weekly reporting tax-exempt funds stayed at 0.35% from the previous week.

The total net assets of the 847 weekly reporting taxable money funds increased $6.57 billion to $2.558 trillion in the week ended Sept. 5, after an outflow of $17.21 billion to $2.551 trillion the week before.

The average, seven-day simple yield for the taxable money funds remained at 0.67% for the fourth week in a row.

Overall, the combined total net assets of the 1,081 weekly reporting money funds increased $5.30 billion to $2.686 trillion in the week ended Sept. 5, after outflows of $17.41 million to $2.681 trillion in the prior week.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.