Municipal bond market traders will be seeing considerably less supply coming to market on Thursday as the week's new issues taper off. Traders will be watching yields, which have been edging up in the past few sessions.
Secondary Market
Treasury prices were mixed on Thursday, with the yield on the two-year Treasury note slipping to 0.72% from 0.73% on Wednesday, while the 10-year yield fell to 2.26% from 2.27% and the 30-year yield was unchanged from 2.94%.
The yield on the 10-year benchmark muni general obligation on Wednesday rose three basis points to 2.24% from 2.21% on Tuesday, while the yield on the 30-year GO rose three basis points to 3.13% from 3.10%, 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 98.9% versus 100.1% on Tuesday, while the 30-year muni to Treasury ratio stood at 106.5% compared to 107.5%, according to MMD.
Primary Market
Morgan Stanley will be pricing a green bond issue as part of a larger sale of $159.05 million of system enterprise revenue bonds for Colorado State University.
The Board of Governors of the Colorado State University System will offer $46.13 million of Series 2015E-2 green bonds on Thursday. Also being priced by Morgan Stanley are $96.5 million of Series 2015E-1 and $16.42 million of Series 2015F bonds.
Citigroup is expected to price the Maine State Housing Authority's $138 million of mortgage purchase bonds for institutions. The issue consists of both tax-exempt and AMT bonds.
Stifel is slated to price the Clovis Unified School District, Calif.'s $103 million of Series D general obligation bonds, election of 2015 issue. The deal is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's.
Tax-Exempt Money Market Funds Post Inflows
Tax-exempt money market funds experienced inflows of $370.2 million, bringing total net assets to $245.79 billion in the period ended Aug. 3, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $1.41 billion to $245.42 billion in the previous week.
The average, seven-day simple yield for the 384 weekly reporting tax-exempt funds remained at 0.01% for the 118th straight week.
The total net assets of the 966 weekly reporting taxable money funds rose $23.54 billion to $2.446 trillion in the period ended Aug. 4, after experiencing an outflow of $5.99 billion to $2.422 trillion in the prior week.
The average, seven-day simple yield for the taxable money funds remained at 0.02% for the 29th consecutive week.
Overall, the combined total net assets of the 1,350 weekly reporting money funds increased $23.91 billion to $2.692 trillion in the period ended July 28, which followed an outflow of $7.40 billion to $2.668 trillion the week before.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 40,368 trades on Wednesday on volume of $8.692 billion.
The most active bond, based on the number of trades, was the Chicago Metropolitan Pier and Exposition Authority's Series 2010B2 McCormick Place expansion project refunding 5s of 2050, which traded 167 times at an average price of 99.214, an average yield of 5.042%. The bonds were initially priced at 96.649.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar was down $2.41 billion to $6.61 billion on Thursday. The total is comprised of $2.08 billion competitive sales and $4.53 billion of negotiated deals.
