The Hudson Yards deal is set to hit the municipal bond market on Tuesday as the week’s primary market heats up.

Secondary market
U.S. Treasuries were little changed on Tuesday. The yield on the two-year Treasury was unchanged from 1.27% on Monday as the 10-year Treasury yield dipped to 2.24% from 2.25% while the yield on the 30-year Treasury bond decreased to 2.90% from 2.91%.

Municipal bonds finished stronger on Monday. The yield on the 10-year benchmark muni general obligation dropped two basis points to 1.99% from 2.01% on Friday, while the 30-year GO yield declined two basis points to 2.85% from 2.87%, according to the final read of Municipal Market Data's triple-A scale.

On Monday, the 10-year muni to Treasury ratio was calculated at 88.3%, compared with 89.6% on Friday, while the 30-year muni to Treasury ratio stood at 97.8%, versus 98.8%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 37,656 trades on Monday on volume of $7.44 billion.

Primary market
Goldman Sachs is set to price the Hudson Yards Infrastructure Corp., N.Y.’s $2.15 billion of tax-exempt Fiscal 2017 Series A second indenture revenue bonds for institutions on Tuesday after holding a two-day retail order period.

On Monday, the HYIC bonds were priced for retail to yield from 1.31% with 3% and 5% coupons in a split 2022 maturity to approximately 3.568% with a 3.50% coupon in 2038; a 2042 maturity was priced as 5s to yield 3.19% while a 2045 maturity was priced as 4s to yield 3.53%.

No retail orders were taken in the 2031, 2033-2035, 2039, 2041, 2044 or 2047 maturities.

Also on Tuesday, the HYIC’s $33.36 billion of taxable Fiscal 2017 Series B bonds will go out for competitive bid.

The deal is rated Aa3 by Moody's Investors Service and A-plus by both S&P Global Ratings and Fitch Ratings.

On Tuesday, Ziegler is set to price the Tarrant County Cultural Education Facilities Finance Corp., Texas’ $238.38 million of Series 2017A, B1-B3 and C retirement facilities revenue bonds for Buckner Senior Living’s Ventana project.

Bank of America Merrill Lynch is set to price the California Municipal Finance Authority’s $236.38 million of Series 2017A revenue refunding bonds for the Eisenhower Medical Center on Tuesday.

The deal is rated Baa2 by Moody’s and BBB by Fitch.

Since 2007, the California MFA has sold about $5.46 billion of securities with the most issuance before this year occurring in 2015 when it sold $840 million. The MFA had come to market every year over the past 10 years, with the lowest issuance taking place back in 2012 when it sold $140 million.

Raymond James is expected to price the Metropolitan Government of Nashville and Davidson County, Tenn.’s $174.51 million of electric system revenue and refunding bonds on Tuesday.

The deal is rated AA-plus by S&P and Fitch.

Wells Fargo Securities is set to price Clark County, Nev.’s $150 million of Series 2017 indexed fuel tax and subordinate motor vehicle fuel tax highway revenue bonds on Tuesday.

The deal is rated Aa3 by Moody’s and AA-minus by S&P.

In the competitive arena on Tuesday, Fort Worth, Texas, is selling $111.67 million of Series 2017 water and sewer system revenue refunding and improvement bonds.

Bond Buyer 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $99.0 million to $12.73 billion on Friday. The total is comprised of $4.51 billion of competitive sales and $8.22 billion of negotiated deals.

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