Australia’s central bank will raise borrowing costs only one more time this year amid signs the nation’s economic expansion won’t push the inflation rate above Governor Glenn Stevens ’s target range, Citigroup Inc. said.
New Jersey and New York City, two of the municipal bond market’s largest borrowers, lead the biggest week of state and local government sales in a month as issuers test demand after investors pulled $12.5 billion from muni mutual funds in December.
Texas, which may face a budget deficit of $21 billion a year from now, is set to cut its cost on a $1 billion highway-bond sale as investors receive about 17 percent less yield than in a previous issue.
Investors prizing Princeton University bought $200 million of its bonds today at yields below top-grade municipal debt. Some residents of the school’s New Jersey hometown are less impressed: They’re suing to strip the institution of its property-tax exemption.
Municipal bonds sold by hospitals and health-care providers are rallying the most since 2009, defying a potential $11 billion drop in Medicare funding from federal budget cuts that loom in three months.