Municipal bond traders are girding for more volume on Wednesday, with the institutional pricing of the New York City Transitional Finance Authority deal leading the pack.

Secondary market
Treasuries were weaker on Wednesday. The yield on the two-year Treasury rose to 1.36% from 1.34% on Tuesday, the 10-year Treasury yield gained to 2.17% from 2.15% and the yield on the 30-year Treasury bond increased to 2.75% from 2.73%.

Municipal bonds ended steady on Tuesday. The yield on the 10-year benchmark muni general obligation was unchanged from 1.86% on Monday, while the 30-year GO yield was flat from 2.70%, 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 86.5%, compared with 85.0% on Monday, while the 30-year muni to Treasury ratio stood at 98.7% versus 96.8%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 42,851 trades on Tuesday on volume of $9.45 billion.

Primary market
Loop Capital markets is set to price the New York City Transitional Finance Authority’s $850 million of tax-exempt Fiscal 2017 Series F Subseries F-1 future tax secured subordinate bonds for institutions after holding a two-day retail order period.

The tax-exempts were priced for retail on Tuesday to yield from 0.99% with a 3% coupon in 2019 to approximately 3.317% with a 3.25% coupon in 2038, a 2043 maturity was priced as 5s to yield 2.96%, a 2043 maturity was priced as 5s to yield 2.96% and a 2044 maturity was priced as 4s to yield 3.27%.

No retail orders were taken in the 2032-2033, 2036-2037, 2039 or 2042 maturities.

The issue is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.

The TFA will also competitively sell $250 million of taxables in two separate offerings on Wednesday.

The TFA sales are composed of $189.14 million of taxable subordinate Fiscal 2017 Series F Subseries F-2 future tax secured bonds and $60.86 million of taxable subordinate Fiscal 2017 Series F Subseries F-3 future tax secured bonds.

The deals are also rated Aa1 by Moody’s and AAA by S&P and Fitch.

Also on Wednesday, Bank of America Merrill Lynch is expected to price the Port of Oakland, Calif.’s $259 million of intermediate lien refunding revenue bonds, consisting of Series 2017D bonds subject to the alternative minimum tax, Series 2017E non-AMT bonds, Series 2017F non-AMT bonds and Series 2017G taxable bonds.

The deal is rated A2 by Moody’s and A by S&P and Fitch.

Citigroup is set to price the Metropolitan Water District of Southern California’s $188 million of Series 2017B subordinate water revenue bonds for retail investors.

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

In the competitive sector, the Rhode Island Health and Educational Building Corp. is selling $140.81 million of Series 2017A higher education facilities revenue bonds for Brown University.

The deal is rated Aa1 by Moody’s and AA-plus by S&P.

Since 2007 the HEBC has issued roughly $3.52 billion of securities, with the largest amount occurring in 2016, when it sold $587 million. The lowest yearly issuance took place in 2014, when it issued just $68 million.

Also slated to come this week is the Wisconsin’s Public Finance Authority’s $1.1 billion deal for the New Jersey Sports & Exposition Authority’s American Dream project. The deal is unrated.

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $5.25 billion to $10.16 billion on Wednesday. The total is comprised of $2.97 billion of competitive sales and $7.19 billion of negotiated deals.

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