Joplin, Missouri, where 161 people were killed in the deadliest single U.S. tornado in almost 60 years, is joining hurricane-ravaged East Coast towns borrowing to rebuild while municipal yields are near generational lows.
The Philadelphia school Kisha Javis’s daughter attends is among buildings that may close in June as the eighth-biggest U.S. district tackles deficits. Investors have backed the fiscal plan, pushing the district’s municipal bonds to a three-month high.
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.
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.
Ohio needs $1 billion to cover transportation projects and doesn’t plan to raise fuel taxes to pay for the work. Governor John Kasich’s solution: have the Ohio Turnpike, whose bonds are trading at record-low yields, supply the funds.
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.
Miami, the Latin-American base for companies such as Harley-Davidson Inc., is set to lower its borrowing costs after posting a budget surplus five times greater than expected amid a real-estate revival.