Muni investors will have their pick of California bonds coming to market in the primary on Thursday. The negotiated deals are led by the $450 million Los Angeles Water and Power system revenue bonds that will be available for institutional investors, and a slew of California Public Works bonds. Investors interested in education credits can also snap up the Los Angeles Water and Power system credits. Here's your Playbook:
Primary:
- The $450 million Los Angeles Water and Power system revenue bonds are entering their institutional sale period, after holding retail order Wednesday. RBC Capital Markets is the lead underwriter on the deal, and the bonds are rated AA-minus by both Standard & Poor's and Fitch Ratings.
- $280 million California Public Works bonds will be sold by JPMorgan. The ratings of the bonds are not listed on Bloomberg. Another $255 million California Public Works bonds will be sold by Barclays Capital, and those bonds carry ratings of A1 by Moody's Investors Service and A-minus by S&P and Fitch.
- On the Competitive calendar are the $112 million Sequoia Union High School District of California's GO bonds. The bonds earned ratings of Aa1 from Moody's and AA from S&P.
Secondary:
- Wednesday's secondary was dominated by trading on New Jersey credits that recently became free to trade. Traders predicted that Thursday's secondary may see a lot of California action, with investors selling in order to get in on the Golden State credits coming to market.
Economic:
- The Economic Calendar will be light on Thursday after the FOMC minutes release dominated Wednesday's news. Jobless claims will start the day off at 8:30 am. Claims had fallen the week of Sept. 27 to 287,000, below analysts' forecasts of 293,000.
- Municipal mutual fund flows data will be reported late Thursday afternoon. Inflows totaled $236.5 million last week, down from $588.8 million the previous week, according to Lipper FMI.
Scales:
- The yield on 10-year and 30 year Treasuries fell two basis points each to 2.30% and 3.04% respectively. The 2-year yield was unchanged at 0.45%.
