Markets

Municipal bonds were trading stronger at mid-session as the Hudson Yards deal was being offered to retail buyers for a second day. The market is waiting for this week’s $7.02 billion new issue calendar to get underway in earnest on Tuesday.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were higher, as the three-months incurred a 0.920% high rate, up from 0.905% the prior week, and the six-months incurred a 1.050% high rate, up from 1.020% the week before.

The Treasury Department said Monday it will sell $55 billion of four-week discount bills Tuesday.

More retail orders will be taken on Monday for the big Hudson Yards deal while municipal bond traders will be watching yields. The market will waiting on the new issue calendar, which is estimated at $7.02 billion.

Municipal volume will remain near recent levels the week before the Memorial Day holiday, supported by rising investor demand and a continuing bond rally, market participants said.

Chicago Public Schools will borrow against delayed state grants to finish the school year.

Hudson Yards Infrastructure Corp., the developer of a 45 block area on Manhattan's west side, won a two-notch upgrade from S&P Global Ratings.

Goldman Sachs opened the first of a two-day retail order period for the Hudson Yards Infrastructure Corp., N.Y.’s $2.15 billion tax-exempt deal as municipal bonds were unchanged ahead of next week's $7.02 billion calendar.

University of Connecticut bonds are on Moody's review for downgrade.

The municipal bond market on Friday will be looking ahead to next week’s new issue calendar as participants eye falling bond yields. The largest deal of the upcoming week is from the Hudson Yards Infrastructure Corp. will offer $2.19 billion of second indenture revenue bonds.