The primary market is winding down on Thursday, with municipal bond traders waiting to see the University of California and the Massachusetts Water Resources Authority deals hit the screens.
U.S. Treasuries were weaker on Thursday. The yield on the two-year Treasury rose three basis points to 1.32% from 1.29% on Wednesday, while the 10-year Treasury yield gained five basis points to 2.36% from 2.31%, and the yield on the 30-year Treasury bond increased five basis points to 3.00% from 2.95%.
Municipals ended stronger on Wednesday. The yield on the 10-year benchmark muni general obligation fell three basis points to 2.15% from 2.18% on Tuesday, while the 30-year GO yield dropped four basis points to 3.02% from 3.06%, 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 93.1%, compared with 95.2% on Tuesday, while the 30-year muni to Treasury ratio stood at 102.2%, versus 102.8%, according to MMD.
On Thursday, Jefferies is set to price the Regents of the University of California’s $1.13 billion deal for institutions.
The issue will consist of about $448 million of Series Av bonds, $186 million of Series AW taxables and $500 million of Series AX taxable fixed-rate notes.
The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.
Since 2007, the Cal Regents have sold roughly $22.34 billion of securities with the most issuance occurring in 2013 when it sold a whopping $4.70 billion. The Regents have only sold less than $1 billion twice during that time period, in 2014, and in 2008 when it sold just $572 million.
Barclays Capital is expected to price the Massachusetts Water Resources Authority’s $300.48 million of Series 2017B general revenue bonds and Series 2017C general revenue refunding green bonds institutions on Thursday.
The deal is rated Aa1 by Moody’s and AA-plus by S&P and Fitch.
JPMorgan is set to price the New Mexico Hospital Equipment loan Council’s $300.12 million of Series 2017 A&B hospital system revenue bonds for Presbyterian Healthcare Services.
The deal is rated Aa3 by Moody’s and AA by S&P and Fitch.
In the competitive arena, Milwaukee is selling $132.23 million of general obligation promissory notes and bonds on Thursday.
The deal is composed of $116.93 million of Series 2017N4 GO promissory notes and $15.3 million of Series 2017B5 GO corporate purpose bonds.
The deal is rated AA by S&P and Fitch.
Bond Buyer visible supply
The Bond Buyer's 30-day visible supply calendar decreased $11.4 million to $11.83 billion on Thursday. The total is comprised of $3.83 billion of competitive sales and $7.998 billion of negotiated deals.
Tax-Exempt Money Market Fund inflows
Tax-exempt money market funds experienced inflows of $62.3 million, bringing total net assets to $128.56 billion in the week ended May 1, according to The Money Fund Report, a service of iMoneyNet.com. This followed an outflow of $651.5 million to $128.50 billion in the previous week.
The average, seven-day simple yield for the 232 weekly reporting tax-exempt funds decreased to 0.41% from 0.42% from the previous week.
The total net assets of the 857 weekly reporting taxable money funds increased $9.50 billion to $2.496 trillion in the week ended May 2, after an inflow of $10.51 billion to $2.486 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.43% from 0.42% in the prior week.
Overall, the combined total net assets of the 1,089 weekly reporting money funds increased $9.26 billion to $2.624 trillion in the week ended May 2, after inflows of $9.85 billion to $2.615 trillion in the prior week.