Big bond offerings from the Port Authority of New York and New Jersey and the Los Angeles Department of Water and Power are on tap for Wednesday as the market keeps watch on rising yields.

Secondary market
U.S. Treasuries were narrowly mixed on Wednesday. The yield on the two-year Treasury rose to 1.28% from 1.27% on Tuesday, while the 10-year Treasury yield was unchanged from 2.33%, and the yield on the 30-year Treasury bond was flat from 2.98%.

Municipal bonds weakened in secondary trading on Tuesday. The yield on the 10-year benchmark muni general obligation rose four basis points to 2.13% from 2.09% on Monday, while the 30-year GO yield gained five basis points to 3.00% from 2.95%, 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 91.5%, compared with 91.9% on Monday, while the 30-year muni to Treasury ratio stood at 100.6%, versus 100.7%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 44,507 trades on Tuesday on volume of $9.01 billion.

Primary market
Wells Fargo Securities is set to price the Port Authority of New York and New Jersey’s $694.74 million of tax-exempt consolidated bonds for institutions on Wednesday after holding a one-day retail order period.

The $250 million of 200th Series bonds not subject to the alternative minimum tax were priced for retail as 5s to yield 2.38% in 2027, 2.50% in 2028, 2.70% in 2030 and from 2.98% in 2034 to 3.11% in 2037, 3.23% in 2042, and 3.30% in 2047. No retail orders were taken in the 2057 maturity.

The $444.74 million of 202nd Series bonds subject to the AMT were priced for retail as 5s to yield 1.43% in 2020 to 3.43% in 2037. The 2017 and 2018 maturities were offered as sealed bids. No retail orders were taken in the 2024 maturity, or split halves of the 2029 and 2030 maturities, or in the 2031, 2032 maturities.

The deal is rated Aa3 by Moody’s Investors Service and AA-minus by S&P and Fitch.

On Wednesday, Bank of America Merrill Lynch is set to price the Los Angeles Department of Water and Power’s $530 million of Series 2017A water system revenue bonds for retail investors ahead of the institutional pricing on Thursday.

The deal is rated Aa2 by Moody’s, AA-plus by S&P and AA by Fitch.

Piper Jaffray is expected to price the Beaverton School District No. 48J, Ore.’s $297.85 million of Series 2017A taxable general obligation bonds, Series 2017B DIBs, Series 2017C CIBs and Series 2017D convertible DIBs on Wednesday. The deal, backed by the Oregon School Bond Guarantee Program, is rated Aa1 by Moody’s and AA-plus by S&P.

Wells Fargo Securities is set to price the town of Mt. Pleasant, S.C.’s $111 million of Series 2017 waterworks and sewer system revenue bonds on Wednesday. The deal is rated Aa1 by Moody’s and AA-plus by S&P.

In the competitive arena on Wednesday, the Maryland Department of Transportation is selling $265 million of Series 2017 consolidated transportation bonds. The deal is rated AA1 by Moody’s, AAA by S&P and AA-plus by Fitch.

The Metropolitan Council of the Minneapolis-St. Paul, Minn., area is selling two separate issues totaling $145 million on Wednesday. The deals consist of $105 million of Series 2016C GO wastewater revenue bonds and $40 million of Series 2017B GO transit bonds. Both deals are rated triple-A by Moody’s and S&P.

The Delaware Transportation Authority is selling $103.86 million of Series 2017 transportation system revenue bonds on Wednesday. The deal is rated Aa2 by Moody’s and AA-plus by S&P.

Since 2007, the authority has issued $1.46 billion of securities, with the most issuance occurring in 2010 when it issued $233 million. It did not issue any bonds in 2011 or 2013.

Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $3.02 billion to $11.68 billion on Tuesday. The total is comprised of $3.81 billion of competitive sales and $7.86 billion of negotiated deals.

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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.