Thursday's primary will bring the most anticipated deal of the week, the $1.1 billion Texas Transportation Commission issuance. Against plummeting Treasury yields and a ferocious municipal rally, the deal promises cheap borrowing rates with slim spreads.
Primary
- The day's and week's calendar is led by the $1.1 Texas Transportation Commission negotiated deal led by J.P. Morgan. The issuance is ultra-high grade, holding a triple-A rating from both Moody's Investors Service and Standard & Poor's. Traders expect the deal to be heavily bid on and pricing to be aggressive. Potential buyers were looking to the week's earlier high-grade deals to predict pricing for Texas.
- The State of Connecticut will also tap the negotiated market with a $730 million of special tax obligation bonds for transportation infrastructure purposes. The deal is led by Raymond James and comes in two tranches, Series 2014A and the Series 2014B refunding bonds. The deal is rated AA by S&P.
- Raymond James will also price the $153.945 million Lewisville, Texas, school building bonds on Thursday. Rated AA-plus by S&P, this deal also comes in two parts: Series 2014A and Series 2014B refunding bonds.
- No deals over $100 million are anticipated in the competitive market.
Information provided by TM3 and The Bond Buyer.
Secondary
- Trading Thursday morning was light in the municipal markets, with no single maturity gaining over $10 million in trades.
Information collected by Municipal Securities Rulemaking Board's disclosure website, EMMA.
Scales
- The Municipal Market Data's triple-A 5% scales held steady on Thursday morning. Bond maturing between 2028 and 2023 and from 2032 through 2044 were unchanged as bonds maturing between 2024 and 2031 strengthened up to one basis point. Bonds maturing between 2015 and 2019 were under review.
Information provided by TM3.
Treasuries
The Treasury market weakened slightly on Thursday morning after a drop in the 10-year Wednesday that was the largest move since early January and brought yields near the lows of early September, according to Janney Capital Markets. The two-year rose one basis point to 0.53% compared to Wednesday's market close, while the 10-year held steady at 2.42%. The 30-year weakened two points in morning trading to 3.14%.
