Municipal bonds were stronger at mid-session as more new deals came to market, topped by some large offerings from issuers in New Jersey, California and Pennsylvania.

Primary Market

Bank of America Merrill Lynch priced the New Jersey Health Care Facilities Financing Authority's $594.41 million of Series 2017A revenue and refunding bonds for the Meridian Health Obligated Group.

The issue was priced to yield from 1.49% with 3% and 5% coupons in a split 2020 maturity to 4.08% with a 4% coupon in 2040. A 2047 maturity was priced as 4s to yield 4.13%, a split 2052 maturity was priced as 4s to yield 4.20% and as 5s to yield 3.86% and a split 2057 maturity was priced as 5s to yield 4.01% and as 5 1/4s to yield 3.94%.

The deal is rated A-plus by S&P Global Ratings and AA-minus by Fitch Ratings.

Since 2007, the New Jersey HCFFA has sold about $8.02 billion of bonds, with the most issuance occurring in 2016 when it offered $1.61 billion of debt, one of only two times in that period it has sold more than $1 billion in a year. The authority saw a low year of issuance back in 2012, when it sold $172 million.


BAML also priced the California State Public Works Board's $537.53 million of Series 2017 B&C various capital lease revenue refunding bonds for retail investors ahead of the institutional pricing on Thursday.

The $382.62 million of Series 2017B bonds were priced for retail as 5s to yield from 0.85% in 2017 to 2.96% in 2030. No retail orders were taken in the 2028-2029 maturities.

The $154.91 million of Series 2017C bonds were priced for retail to yield from 0.90% with a 3% coupon in 2018 to 3.28% with a 5% coupon in 2035.

The deal is rated A1 by Moody's and A-plus by S&P and Fitch.

Goldman Sachs priced Philadelphia's $280.94 million of Series 2017A water and wastewater revenue bonds.

The issue was priced as 5s to yield 1.31% in 2019, from 3.26% in 2032 to 3.49% in 2037, and 3.56% in 2047. A split 2052 maturity was priced as 5s to yield 3.76% and as 5 1/4s to yield 3.69%. A 2018 maturity was offered as a sealed bid.

The deal is rated A1 by Moody's and A-plus by S&P and Fitch.

Jefferies is set to price the New York State Environmental Facilities Corp.'s $415.4 million of state clean water and drinking water revolving fund bonds for New York City Municipal Water Authority projects.

The deal is rated triple-A by Moody's, S&P and Fitch.

Late Monday, BAML priced the Massachusetts Clean Water Trust's $303.96 million of state revolving fund Series 20 green bonds and Series 2017 refunding bonds for institutions after holding a retail order period.

The $207.26 million of Series 20 green bonds were priced to yield from 0.80% with a 4% coupon in 2018 to 2.91% with a 5% coupon in 2037. A 2042 maturity was priced as 5s to yield 2.98% and a 2047 maturity was priced as 5s to yield 3.03%.

The $96.71 million of refunding bonds were priced as 5s to yield from 1.44% in 2021 to 2.68% in 2029.

The deal is rated triple-A by Moody's, S&P and Fitch.

RBC Capital Markets received the written award on the San Joaquin County Transportation Authority, Calif.'s Series 2017 Measure K limited tax sales tax revenue refunding bonds.

The issue was priced to yield from 0.80% with a 2% coupon in 2018 to 3.11% with a 5% coupon in 2037; a split 2041 maturity was priced as 4s to yield 3.64% and as 5s to yield 3.17%.

The deal is rated AA by S&P and Fitch.

Bond Buyer Visible Supply

The Bond Buyer's 30-day visible supply calendar decreased $385.8 million to $12.20 billion on Wednesday. The total is comprised of $3.97 billion of competitive sales and $8.23 billion of negotiated deals.

Secondary Market

The yield on the 10-year benchmark muni general obligation fell as much as one basis point from 2.22% on Tuesday, while the 30-year GO yield dropped as much as one basis point from 3.01%, according to a read of Municipal Market Data's triple-A scale.

U.S. Treasuries were little changed on Wednesday. The yield on the two-year was unchanged from 1.25% on Tuesday, while the 10-year Treasury yield rose to 2.36% from 2.35%, and the yield on the 30-year Treasury bond increased to 3.00% from 2.99%.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 94.5% on Tuesday compared to 95.1% on Monday, while the 30-year muni to Treasury ratio stood at 100.6%, versus 101.6%, according to MMD.

MSRB: Previous Session's Activity

The Municipal Securities Rulemaking Board reported 45,340 trades on Tuesday on volume of $10.82 billion.

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Aaron Weitzman

Aaron Weitzman

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