The Board of Regents for Texas A&M University will be in the municipal bond market on Thursday, selling two separate issues totaling almost $290 million in the competitive arena.
Thursday is the last full trading day of the week as the market readies for a noon, EDT, close on the Good Friday holiday after the release of the March employment report.
Secondary Market
Treasury prices were mixed on Thursday. The yield on the two-year Treasury note was flat at 0.53% from Wednesday, while the 10-year yield increased to 1.88% from 1.87% and the 30-year yield rose to 2.49% from 2.48%.
The yield on the 10-year benchmark muni general obligation on Wednesday closed down three basis points to 1.93% from 1.96% on Tuesday (also set three basis points lower in the quarter-end April roll), while the yield on 30-year GO declined one basis point to 2.79% from 2.80%, according to the final read of Municipal Market Data's triple-A scale.
On Wednesday, the 10-year muni to Treasury ratio was calculated at 103.4% versus 101.6% on Tuesday, while the 30-year muni to Treasury ratio stood at 112.8% compared to 110.2%.
Primary Market
On Thursday, the Board of Regents for Texas A&M University will be selling two separate issues totaling $289 million in the competitive arena.
The issues consist of $144 million Series 2015A permanent university fund bonds and $145 million Series 2015B taxable permanent university fund bonds. Both issues are rated triple-A by Moody's, S&P and Fitch.
The University last sold bonds competitively on Nov. 13, 2013, when Morgan Stanley won $209 million Series 2013 permanent university fund bonds with a true interest cost of 2.7867%
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $2.402 billion to $11.651 billion on Thursday. The total is comprised of $3.690 billion competitive sales and $7.961 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 40,291 trades on Wednesday on volume of $8.375 billion.
Most active, based on the number of trades, was the New York City Municipal Water Finance Authority's Series GG second general resolution water and sewer system revenue 1 1/8s of 2032, which traded 193 times at an average price of 98.547 with an average yield of 3.224%; (initial offering price of 98.62, an initial offering yield of 3.23%).
