The New York City Transitional Finance Authority's $650 million is slated to be priced for institutions on Thursday after a two-day order period for retail investors.
On Wednesday, prices of top-rated municipal bonds finished mixed in secondary trading, according to bond traders.
Secondary Market
Treasury prices were higher on Thursday as the yield on the two-year Treasury note slipped to 0.49% from 0.50% on Wednesday, while the 10-year yield fell to 1.87% from 1.90% and the 30-year yield decreased to 2.52% from 2.55%.
Prices of top-quality munis finished mixed on Wednesday, according to bond traders. The yield on the 10-year benchmark muni general obligation fell one basis point to 1.94% from 1.95% on Tuesday, while the yield on the 30-year GO was unchanged at 2.82%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Wednesday at 102.2% versus 102.5% on Tuesday, while the 30-year muni to Treasury ratio stood at 110.3% compared to 110.8%.
Primary Market
Loop Capital Markets is set to price the NYC TFA's $650 million of Fiscal 2015 Subseries E-1 future tax secured subordinate bonds for institutions after holding a two-day order period for retail investors.
On day two of the retail pricing, the deal was priced to yield from 0.87% with 1%, 3% and 5% coupons in a 2018 triple split maturity to 3.00% with a 5% coupon in 2033. A 2042 split maturity was priced as 3 5/8s to yield 3.70% and as 5s to yield 3.19%. No retail orders were taken in 2031, 2034, 2035 and 2041. A 2017 maturity was offered as a sealed bid.
On day one, the bonds were priced for retail to yield from 0.87% with 1%, 3% and 5% coupons in a 2018 triple split maturity to 3.02% with a 5% coupon in 2033. A 2042 split maturity was priced as 3 5/8s to yield 3.70% and as 5s to yield 3.21%. No retail orders were taken in 2030, 2031, 2034, 2035 and 2041. A 2017 maturity was offered as a sealed bid.
The bonds were rated Aa1 by Moody's and triple-A by S&P and Fitch.
Additionally, the TFA will competitively sell $200 million of Fiscal 2015 Series E Subseries E-2 future tax secured taxable subordinate bonds on Thursday. The deal may be structured as serials ranging from 2020 to 2029. The taxables were rated Aa1 by Moody's and triple-A by S&P and Fitch.
Also in the competitive arena, the Portland Public School District Number 1J, Multnomah Co., Ore., is selling two separate competitive sales totaling $275 million. The bonds are rated Aa1 by Moody's and AA-plus by S&P. The sales consist of $243.26 million Series 2015B tax-exempt general obligation bonds and $31.75 million taxable GOs, both issued under the Oregon School Bond Guaranty Act.
The school district last sold bonds on April 17, 2013, when Citi won $76.27 million of Series 1013A GOs with a true interest cost of 0.2839%.
And the state of West Virginia is selling $137.44 million of Series 2015A GO state road refunding bonds. The bonds are rated Aa1 by Moody's and AA-plus by Fitch.
West Virginia was last in the competitive sector on Jan. 22 when JPMorgan won $65.97 million of 2015 Series A GO refunding bonds with a TIC of 1.7877%.
Tax-Exempt Money Market Funds Post Outflow
Tax-exempt money market funds had an outflow of $3.74 billion, bringing total net assets to $255.76 billion in the period ended April 13, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $1.84 billion to $259.50 billion in the previous week.
The average, seven-day simple yield for the 396 weekly reporting tax-exempt funds remained at 0.01% for a 102nd straight week.
The total net assets of the 991 weekly reporting taxable money funds fell $26.85 billion to $2.385 trillion in the period ended April 14, after experiencing an outflow of $6.76 billion to $2.412 trillion in the prior week.
The average, seven-day simple yield for the taxable money funds remained at 0.02% for the 12th consecutive week.
Overall, the combined total net assets of the 1,387 weekly reporting money funds decreased $30.60 billion to $2.641 trillion in the period ended April 14, which followed an outflow of $4.92 billion to $2.671 trillion in the prior period.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $1.196 billion to $10.230 billion on Wednesday. The total is comprised of $4.407 billion competitive sales and $5.822 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 45,880 trades on Wednesday on volume of $14.666 billion.
The most active bond, based on the number of trades, was the Chicago Series 2012B taxable GO project and refunding 5.432s of 2042, which traded 414 times at an average price of 87.456 with an average yield of 6.419%. The bonds were initially priced at par to yield 5.432%.
