Traders on Wednesday were waiting for a second wave of new supply one day after retail pricings were announced for the University of California and New York City.
Primary Market
On Tuesday, Barclays Capital priced the UC Regent's $788.52 million of tax-exempt Series AO general revenue bonds for retail investors with Stifel as co-manager. The series is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
Also on Tuesday, RBC priced New York City's $799.94 million Fiscal 2015 Series C and D general obligation bonds for retail investors. The deal is rated Aa2 by Moody's and AA by S&P and Fitch.
And Bank of America Merrill Lynch priced the N.Y. Metropolitan Transportation Authority's $276.13 million of transportation revenue bonds for retail investors. The issue is rated A2 by Moody's, AA-minus by S&P and A by Fitch.
Also expected this week are Dallas' $589 million of taxable and tax-exempt waterworks and sewer system revenue refunding bonds to be priced by Cabrera Capital Markets; Connecticut's $500 million of taxable and tax-exempt GOs to be priced by Citigroup Global Markets; the San Francisco Public Utilities Commission's $450 million of water system bonds to be priced by JPMorgan Securities; and the Michigan Finance Authority's $312 million of student loan asset-backed notes to be priced by Bank of America Merrill Lynch.
Secondary Market
Treasury prices were lower on Wednesday. The yield on the two-year Treasury note rose to 0.70% from 0.68% on Tuesday, while the 10-year yield increased to 2.15% from 2.13% and the 30-year yield rose to 2.74% from 2.72%.
Prices of top-quality munis closed mixed on Tuesday. The yield on the 10-year benchmark muni general obligation was unchanged from Monday at 2.18%, while the yield on 30-year GO was off two basis points to 3.00% from 3.02%, according to the final read of Municipal Market Data's triple-A scale.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 101.6% versus 99.4% on Monday, while the 30-year muni to Treasury ratio stood at 109.8% compared to 107.9%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar decreased $2.447 billion to $13.740 billion on Wednesday. The total is comprised of $2.456 billion competitive sales and $11.284 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 36,758 trades on Tuesday on volume of $7.303 billion.
Most active on Tuesday, based on the number of trades, was the 2010-issued New York City Fiscal 2011 Series F taxable GOs, Subseries F-1, Build America Bonds, 5.237% BABs of 2021, which traded 188x times at an average price of 115.052 with an average yield of 2.765%; (initial offering price of 100.00 and an initial offering yield of yield of 5.237%).
