All is quiet in the market this morning, as everyone is awaiting the Federal Open Market Committee's announcement on interest rates. It is expected that the Fed will raise rates by 25 basis points from near zero, but we will not know until 2 p.m., EST.
Primary Market
Not much action is expected on Wednesday, as the market will take a pause as investors wait for the Fed announcement.
On Thursday, Barclays Capital is slated to price the Utah Housing Corp.'s $100 million of Series 2015D single-family mortgage bonds. The deal is rated Aa3 by Moody's Investors Service.
Since 2005, the UHC has issued $2.69 billion of debt. The years of 2005 and 2009 saw the most issuance with $363 million and $407 million, respectively. The years of 2011 and 2012 were low years, when the UHC issued $35 million and $61 million, respectively. The UHC has been to market an average of 15.3 times per year since 2005.
Secondary Market
U.S. Treasury bonds were little changed on Wednesday morning as the yield on the two-year inched up to 0.98% from 0.97% on Tuesday, while the 10-year yield gained to 2.28% from 2.27% and the 30-year Treasury was unchanged from 3.00%.
On Tuesday, the yield on the 10-year benchmark muni general obligation rose three basis points to 1.98% from 1.95% on Monday, while the 30-year yield was five basis points higher to 2.89% from 2.84%, according to a final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Tuesday at 86.7% compared to 87.4% on Monday, while the 30-year muni to Treasury ratio stood at 96.3% compared to 95.9%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,086 trades on Tuesday on volume of $7.66 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $1.048 billion to $3.33 billion on Wednesday. The total is comprised of $929 million competitive sales and $2.40 billion of negotiated deals.
