Municipal bond traders will see the return of the Windy City to the new issue sector as they offer a water deal one day after coming to market with a wastewater deal.

Secondary market
U.S. Treasuries were little changed on Wednesday. The yield on the two-year Treasury rose to 1.30% from 1.29% on Tuesday as the 10-year Treasury yield was unchanged from 2.15% while the yield on the 30-year Treasury bond increased to 2.82% from 2.81%.

Municipal bonds ended stronger on Tuesday. The yield on the 10-year benchmark muni general obligation fell three basis points to 1.83% from 1.86% on Monday, while the 30-year GO yield decreased three basis points to 2.66% from 2.69%, 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 85.5%, compared with 85.2% on Monday, while the 30-year muni to Treasury ratio stood at 94.8% versus 94.7%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 44,024 trades on Tuesday on volume of $10.13 billion.

Primary Market
The city of Chicago is back in the market on Wednesday as Cabrera Capital Markets gets set to price the city’s $199.56 million of Series 2017 second lien water revenue refunding bonds.

The deal is rated A by S&P Global Ratings and AA-minus by Fitch Ratings and Kroll Bond Rating Agency.

Since 2007, the city of Chicago has issued roughly $28.44 billion of securities with the most issuance occurring in 2015 when it sold $4.24 billion.

The Windy City has issued more than $2 billion in a year eight times over the past decade and during the same time, has only issued less than $1 billion once – back in 2009 when it issued just $778 million.

Also on Wednesday, Citigroup is expected to price the Macomb Interceptor Drain Drainage District, Mich.’s $128 million of Series 2017A drain and refunding bonds.

The deal is rated Aa1 by Moody’s Investors Service and AA-plus by S&P.

In the competitive arena on Wednesday, the state of Maine is selling $104.49 million of bonds in two separate issues. The deals consist of $89.36 million of Series 2017B general obligation bonds and $15.13 million of Series 2017A taxable GOs.

Both deals are rated Aa2 by Moody’s and AA by S&P.

Bond Buyer 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $3.71 billion to $8.53 billion on Wednesday. The total is comprised of $3.80 billion of competitive sales and $4.73 billion of negotiated deals.

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