The primary municipal bond market led the secondary Wednesday with two billion-plus deals and a diversity of exempt, taxable and green or social bonds being repriced to lower yields while U.S. Treasuries were better on the day with the 30-year dipping below 2% and equities losing ground.
Triple-A municipal benchmark yields were little changed. Ratios held in a range Wednesday with the municipal-to-Treasury ratios at 50% in five years, at 69% in 10 years and 78% in 30 years, according to Refinitiv MMD's 3 p.m. read. ICE Data Services had the five-year at 50%, the 10 at 71% and the 30 at 78%.
The Investment Company Institute reported $1.608 billion of inflows into municipal bond mutual funds for the week ending Nov. 10, up from $657 million a week prior, marking the 36th consecutive week of inflows and bringing the total for the year to more than $80 billion.
Exchange-traded funds saw another high week with ICI reporting $751 million of inflows, down from $828 million of inflows a week prior.
Returns are still in positive territory with the Bloomberg Fixed Income Indices showing investment grades up 0.52% in November and 1.02% on the year, high-yield at positive 0.94% for the month and 7.09% on the year while taxables have lost 0.64% in November and positive 0.25% in 2021.
It was all about the primary Wednesday, though, and investors had quite the selection of credits.
BofA Securities priced for the San Diego County Regional Airport Authority (A2//A+/) $1.587 billion of tax-exempt non-AMT and private activity AMT subordinate airport revenue bonds.
The first $490.68 million of non-AMT bonds, saw 5s of 7/2026 at 0.64%, 5s of 2031 at 1.25%, 4s of 2036 at 1.68%, 4s of 2041 at 1.86%, 4s of 2041 at 2.00%, 5s of 2051 at 1.94%, 4s of 2051 at 2.09%, 5s of 2056 at 2.06%, and 4s of 2056 at 2.22%, callable in 7/1/2031.
The second, $1.096 billion of AMT PABs, saw 5s of 7/2026 at 0.87%, 5s of 2031 at 1.57%, 4s of 2036 at 1.93%, 4s of 2041 at 2.09%, 4s of 2046 at 2.23%, 5s of 2046 at 2.09%, 4s of 2051 at 2.33%, 5s of 2051 at 2.17%, 4s of 2056 at 2.46% and 5s of 2056 at 2.28%, callable in 7/1/2031.
Barclays Capital Inc. priced and repriced for the California Health Facilities Financing Authority (Aa3/AA-/AA-/) $1.033 billion of Cedars-Sinai Health System revenue bonds with bumps: 4s of 8/2037 at 1.69% (-5), 5s of 2041 at 1.71%, 4s of 2048 at 2.05% (-3), 3s of 2051 at 2.52% (-3) and 5s of 2051 at 1.91%, callable in 8/15/2031.
Goldman, Sachs & Co. priced for the California Community Choice Financing Authority (A2///) $602.655 million of clean energy project revenue bonds, Climate Bond Initiative certified, Kestrel Verifiers. Bonds in 12/2023 with a 4% coupon yield 0.54%, 4s of 2026 at 1.12%, and 4s of 2052 with a mandatory tender on 12/1/2027, at 1.48%.
Loop Capital Markets priced and repriced for Cook County, Illinois, (A2/A+/AA-/) $191 million of general obligation refunding bonds with big bumps, with 4s of 11/2022 at 0.21% (-12), 4s of 2026 at 0.88% (-10), and 4s of 2028 at 1.25% (-10) and 2s of 2028 at 1.25%, noncall.
Loop Capital Markets also priced $57.52 million of taxables, priced at par at 0.606% in 11/2022, 1.741% in 2026 and 1.941% in 2027, noncall.
Citigroup Global Markets Inc. priced for the Tennessee Housing Development Agency (Aa1/AA+//) $170 million of residential finance program bonds, consisting of $90.82 million of non-AMT social bonds, priced at par: 0.20% in 7/2022, 0.80% in 1/2026, 0.90% in 7/2026, 1.80% in 1/2031, 1.85% in 7/2031, 2.10% in 7/2036, 2.30% in 7/2041, 2.55% in 7/2046, 2.60% in 7/2051 and 1.33% with a 3% coupon in 7/2052, PAC bonds. The second series, $79.18 million of non-AMT bonds, priced at par at 0.70% in 7/2022, callable in 4/1/2022.
Goldman Sachs & Co. LLC priced for Clark University, Massachusetts, (A2///) $155.2 million of taxable refunding bonds, priced at par at 2.613% in 7/2031, 3.113% in 2036, 3.216% in 2042 and 3.316% in 2052.
RBC Capital Markets priced for Colorado (Aa2/AA-//) $150.48 million of Building Excellent Schools Today certificates of participation, with one to 10 basis point bumps in a repricing: 5s of 3/2022 at 0.15% (-4), 5s of 2026 at 0.65% (-3), 5s of 2031 at 1.26% (-5), 4s of 2036 at 1.64%, 4s of 2041 at 1.81%, and 4s of 2046 at 2.01%, callable in 3/15/2031.
Huntington Securities, Inc. priced and repriced for Katy Independent School District, Texas, (Aaa/AAA//) $135.495 million of unlimited tax school building bonds, PSF guarantee, with one to 12 basis point bumps: 5s of 2/2022 at 0.11% (-5), 5s of 2026 at 0.66%, 5s of 2031 at 1.25%, 3s of 2036 at 1.59% (-10), 3s of 2041 at 1.78% (-12), 3s of 2046 at 2.03% (-8) and 3s of 2051 at 2.13% (-8), callable in 2/15/2031.
BofA Securities priced for the Housing Opportunities Commission of Montgomery County, Maryland, (Aaa///) $111.36 million of non-AMT and taxable multifamily housing development bonds: $104.245 million of non-AMT, priced at par: 0.80% in 7/2025, 1.90% in 1/2031, 1.95% in 7/2031, 2.20% in 7/2036, 2.40% in 7/2041, 2.60% in 7/2046 and 2.70% in 1/2051, callable in 7/1/2030; $7.115 million of taxables, priced at par: 1.67% in 7/2026 and 2.27% in 1/2030.
In the primary on Tuesday, J.P. Morgan Securities LLC priced for the Metropolitan Water Reclamation District of Greater Chicago (/AA/AAA/) $500 million of general obligation limited and unlimited tax, tax-exempt, green and taxable bonds: $112.485 million of taxable unlimited tax general obligation refunding bonds, priced at par: 12/2026 at 1.615%, 2032 at 2.534%, 2033 at 2.684%, callable in 12/1/2031; $45.845 million of taxable unlimited tax general obligation refunding bonds (alternative revenue source), priced at par: 12/2022 at 0.57%, 2026 at 1.615%, 2031 at 2.334%, 2036 at 2.984% and 2041 at 3.06%, callable in 12/1/2031; $113.935 million of general obligation limited tax capital improvement green bonds, with 5s of 12/2027 at 0.96%, 5s of 2031 at 1.39%, 5s of 2038 at 1.63%, 5s of 2041 at 1.72%, 4s of 2046 at 2.03%, and 4s of 2051 at 2.08%, callable in 12/1/2031; $30 million of general obligation unlimited tax capital improvement green bonds, with 5s of 12/2033 at 1.43%, 5s of 2035 at1.50% and 5s of 2036 at 1.52%, callable in 12/1/2031; $166.18 million of general obligation limited tax refunding bonds, with 5s of 12/2022 at 0.21%, 5s of 2026 at 0.79%, 5s of 2031 at 1.39% and 5s of 2032 at 1.42%, callable in 12/1/2031; and $31.555 million of general obligation unlimited tax refunding bonds, with 5s of 12/2029 at 1.21% and 5s of 2031 at 1.35%, noncall.
Informa: Money market muni funds fall
Tax-exempt municipal money market fund assets fell by $151.1 million, bringing their total down to $87.67 billion for the week ending Nov. 16, according to the Money Fund Report, a publication of Informa Financial Intelligence.
The average seven-day simple yield for the 150 tax-free and municipal money-market funds sat at 0.01%, the same as the previous week.
Taxable money-fund assets lost $3.55 billion, bringing total net assets to $4.432 trillion. The average, seven-day simple yield for the 782 taxable reporting funds sat at 0.02%, same as the prior week.
Secondary trading
Washington COPs 5s of 2022 at 0.23%. Maryland 5s of 2023 at 0.26% versus 0.27% Tuesday. Georgia 5s of 2023 at 0.24% versus 0.26% Tuesday. Prince George's County 5s of 2023 at 0.25% versus 0.27% Tuesday.
North Carolina 5s of 2024 at 0.32% versus 0.33% Tuesday. Maryland 5s of 2024 at 0.38%. Wisconsin 5s of 2024 at 0.42% versus 0.43% Tuesday. California 5s of 2025 at 0.52%. Charlotte, North Carolina 5s of 2026 at 0.61%-0.59% versus 0.60% original.
Charlotte 5s of 2030 at 1.08% versus 1.03% original. Maryland 5s of 2030 at 1.11%. New York City waters 5s of 2031 at 1.16%.
Los Angeles DWP 5s of 2036 at 1.30%. Metropolitan Water District of Southern California 5s of 2038 at 1.31%.
Washington 5s of 2042 at 1.59%-1.58%. Dallas waters 3s of 2050 at 2.09%-1.98%.
AAA scales
According to Refinitiv MMD, the one-year was steady at 0.15% in 2022 and at 0.25% in 2023. The 10-year sat at 1.11% and at 1.56% in 30.
The ICE municipal yield curve showed yields steady at 0.19% in 2022 and at 0.28% in 2023. The 10-year maturity sat at 1.11% and the 30-year yield was unchanged at 1.59%.
The IHS Markit municipal analytics curve showed short yields steady at 0.17% in 2022 and at 0.25% in 2023. The 10-year yield was steady at 1.08% and the 30-year yield also steady at 1.56%.
The Bloomberg BVAL curve was unchanged at 0.17% in 2022 and 0.23% in 2023. The 10-year yield sat at 1.11% and the 30-year yield steady at 1.58%.
Treasuries were better and equities saw losses.
The five-year UST was yielding 1.229%, the 10-year at yielding 1.590%, the 20-year at 2.024% and the 30-year Treasury was yielding 1.980% near the close. The Dow Jones Industrial Average lost 211 points or 0.58%, the S&P was down 0.26% while the Nasdaq fell 0.33% near the close.
Primary to come
Mississippi (Aa2/AA/AA/) is
Grand Canyon University (Ba1///) is
Georgia Tech Foundation is set to price on Thursday $100 million of taxable corporate CUSIP bonds, term 2051, indications of interest on Wednesday. Barclays Capital Inc.
Competitive
The San Francisco Public Utilities Commission (Aa2/AA//) is set to sell $216.825 million of wastewater revenue green notes at 10 a.m. Eastern time on Thursday.
