BusinessBusinessDetroit Bankruptcymunicipal bonds

Municipal Bond Selloff Accelerated By Detroit Bankruptcy Filing

How The Detroit Bankruptcy Is Impacting The Bond Market
Reuters
|

NEW YORK, July 19 (Reuters) - U.S. municipal bonds fell the most in nearly a month on Friday as news that Detroit had filed for the largest municipal bankruptcy in U.S. history added to a slew of concerns about the $3.7 trillion market.

Selling picked up in the afternoon. Yields on longer-dated triple-A maturities ranging from 2037 to 2043 rose by 9 to 11 basis points, according to a preliminary read on Municipal Market Data's triple-A scale.

The rise was the steepest since June 24 after the U.S. Federal Reserve rattled markets with plans to scale back its bond buying program, pushing yields on both the 10- and the 30-year maturities up as much as 17 basis points in a single session. Prices move inversely to yields.

(Reporting by Edward Krudy; Editing by Tiziana Barghini and Chizu Nomiyama)

Our 2024 Coverage Needs You

As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.

Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.

to keep our news free for all.

Support HuffPost

Before You Go

States Whose Residents Are Most Affected By The Fiscal Cliff
1. Connecticut(01 of05)
Open Image Modal
Average Tax Increase From Expiration Of Bush Tax Cuts In 2013: $5,783(Source: Tax Foundation)Click here for the rest of the states getting hit worst by the fiscal cilff (credit:AP)
2. New York(02 of05)
Open Image Modal
Average Tax Increase From Expiration Of Bush Tax Cuts In 2013: $5,452Click here for the rest of the states getting hit worst by the fiscal cilff (credit:AP)
3. New Jersey(03 of05)
Open Image Modal
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $5,030Click here for the rest of the states getting hit worst by the fiscal cilff (credit:AP)
4.Massachusetts(04 of05)
Open Image Modal
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $4,272Click here for the rest of the states getting hit worst by the fiscal cilff (credit:AP)
5. California(05 of05)
Open Image Modal
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $4,242Click here for the rest of the states getting hit worst by the fiscal cilff (credit:AP)
Suggest a correction
|
Submit a tip