Bond yields at a glance | ||||
MBIS benchmark (~AA) | MBIS AAA | MMD AAA | U.S. Treasuries | |
10 year | 2.613 | 2.527 | 2.37 | 2.81 |
30 year | 3.053 | 2.974 | 2.92 | 3.09 |
MBIS indices are updated hourly on the Bond Buyer Data Workstation. |
As equity and Treasury markets continued to show volatility, muni traders helped buyers looking for a safe haven.
Early reports of traders selling were circulating among the desks as bid-wanted and offerings lists were making the rounds.
MBIS reported a top bid-wanted list included New York State Dormitory Authority’s Series 2016D state personal income 5% bonds of 2026. And a top offering list reported by MBIS included the ABAG Finance Authority for Nonprofit Corporations of California’s Series 2012A 5% hospital bonds of 2028.
Primary market
Morgan Stanley priced the Los Angeles Department of Water and Power’s $231 million of Series 2018A water system revenue bonds for retail investors on Wednesday.
The issue was priced as 5s to yield from 1.83% in 2023 to 2.98% in 2039. Yields on the serial scale ranged from seven basis points below the comparable MMD triple-A security to 15 basis above the MMD read.
A 2043 term bond was priced as 5s to yield 3.02%, about 15 basis points above the MMD scale, and a 2048 term was priced as 5s about 15 basis points above the comparable MMD maturity.
The deal is rated Aa2 by Moody’s Investors Service, AA-plus by S&P Global Ratings and AA by Fitch Ratings.
Since 2008, LADWP has sold about $13 billion of debt, with the most issuance occurring in 2010 when it offered $2.06 billion of bonds. It sold the least amount of bonds in that time frame in 2008, when it sold $550 million of debt.
Goldman Sachs priced Harris County, Texas’ $567.2 million of Series 2018A senior lien toll road revenue refunding bonds on Wednesday.
The issue was priced to yield from 1.45% with a 5% coupon in 2019 to 3.41% with a 4% coupon in 2038. A 2043 term bond was priced as 5s to yield 3.17% while a 2048 term was priced as 4s to yield 3.62%.
The deal is rated Aa2 by Moody’s and AA by Fitch.
In the competitive arena, the University System of Maryland sold $115 million of Series 2018A auxiliary facility and tuition revenue bonds.
UBS Financial won the bonds with a true interest cost of 2.0557%. Pricing information was not immediately available.
The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.
The city and county of Denver, Colo., sold $97 million of Series 2018 wastewater enterprise revenue bonds.
Citigroup won the bonds with a TIC of 3.3418%. The deal is rated Aa1 by Moody’s and AAA by S&P.
Previous session's activity
On Tuesday, the 10-year muni-to-Treasury ratio was calculated at 85.6% compared with 88.0% on Monday, while the 30-year muni-to-Treasury ratio stood at 96.0% versus 98.1%, according to MMD.
The Municipal Securities Rulemaking Board reported 43,821 trades on Tuesday on volume of $10.27 billion. California, Texas and New York were the three states with the most trades on Tuesday, with the Golden State taking 12.764% of the market, the Empire State taking 12.026% and the Lone Star State taking 9.893%.
Bond Buyer 30-day visible supply at $6.03B
The Bond Buyer's 30-day visible supply calendar decreased $42.7 million to $6.03 billion on Tuesday. The total is comprised of $1.64 billion of competitive sales and $4.39 billion of negotiated deals.
Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation.