Muni In­vestors Buy Some Tax­ables as Yields Flat­ten Out

The Bond Buyer - - Market News - By Chip Bar­nett & aaron Weitzman

Mu­nic­i­pal bond buy­ers gob­bled up tax­able sup­ply from Penn­syl­va­nia and Illi­nois Thurs­day as the re­cent rise in yields slowed. Traders’ at­ten­tion shifted to next week’s cal­en­dar which is topped by the Sales Tax Se­cu­ri­ti­za­tion Corp.’s $898 mil­lion deal out of Chicago.

RBC Cap­i­tal Markets re­ceived the writ­ten award on the Penn­syl­va­nia Com­mon­wealth Fi­nanc­ing Author­ity’s $412.0 mil­lion of Se­ries 2018A tax­able rev­enue bonds for the Plan­con pro­gram.

The is­sue was priced at par to yield from 3.451% in 2027 to 3.781% in 2031 and 3.864% in 2038.

The deal is rated A1 by Moody’s In­vestors Ser­vice, A by S&P Global Rat­ings and A-plus by Fitch Rat­ings.

JPMor­gan Se­cu­ri­ties re­ceived the of­fi­cial award on the Illi­nois Fi­nance Author­ity’s $223.55 mil­lion of Se­ries 2018 tax­able rev­enue re­fund­ing bonds for the Ann and Robert H. Lurie Chil­dren’s Hos­pi­tal of Chicago.

The is­sue was priced at par to yield from

3.498% in 2028 to 3.748% in

2034 and 3.944% in a 2047 term ma­tu­rity with an av­er­age life of

26.278 years.

The deal is rated AA-mi­nus by

S&P and AA by


JPMor­gan also priced the Tom­ball In­de­pen­dent School District, Texas’ $133.41 mil­lion of Se­ries 2018 un­lim­ited tax school build­ing bonds.

The is­sue was priced as 5s to yield from 1.66% in 2020 to 2.86% in 2039. A 2041 term bond was priced as 5s to yield 2.87% while a 2044 term was priced as 4s to yield 3.30%.

The deal is backed by the Per­ma­nent School Fund guar­an­tee pro­gram and is rated triple-A by Moody’s and S&P.

Bond Buyer 30-day vis­i­ble sup­ply at $5.30B

The Bond Buyer’s 30-day vis­i­ble sup­ply cal­en­dar de­creased $534.6 mil­lion to $5.30 bil­lion on Thurs­day. The to­tal is com­prised of $2.25 bil­lion of com­pet­i­tive sales and $3.05 bil­lion of ne­go­ti­ated deals.


Tax-ex­empt money mar­ket funds ex­pe­ri­enced in­flows of $4.34 bil­lion, bring­ing to­tal net as­sets to $135.40 bil­lion in the week ended Jan. 8, ac­cord­ing to The Money Fund Re­port, a ser­vice of

This followed an in­flow of $130.8 mil­lion to $131.06 bil­lion in the pre­vi­ous week.

Next week, Gold­man Sachs is set to price the Sales Tax Se­cu­ri­ti­za­tion Corp.’s $898.07 mil­lion of Se­ries 2018A sales tax se­cu­ri­ti­za­tion bonds on Wed­nes­day.

The Chicago deal is rated AA by S&P, and AAA by Fitch and Kroll Rat­ing Agency.


The MBIS mu­nic­i­pal non-callable 5% GO bench­mark scale was weaker in late trad­ing.

The 10-year muni bench­mark yield rose to 2.355% on Thurs­day from the fi­nal read of 2.345% on Wed­nes­day, ac­cord­ing to Mu­nic­i­pal Bond In­for­ma­tion Services. The MBIS 30-year bench­mark muni yield gained to 2.858% from 2.844%.

Top-rated mu­nic­i­pal bonds fin­ished mixed on Thurs­day. The yield on the 10year bench­mark muni gen­eral obli­ga­tion was steady from 2.12% on Wed­nes­day, while the 30-year GO yield fell one ba­sis point to 2.71% from 2.72%, ac­cord­ing to the fi­nal read of MMD’s triple-A scale.

U.S. Trea­suries were lit­tle changed in late ac­tiv­ity. The yield on the two-year Trea­sury dipped to 1.96% from 1.97% on Wed­nes­day, the 10-year Trea­sury yield dropped to 2.53% from 2.56% and the yield on the 30-year Trea­sury de­creased to 2.87% from 2.89%. ◽

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