Gyrating Ratio
The ratio of 30-year AAA muni yields to those on comparable U.S. Treasuries is also near the highest in a year. About three months after touching its 2012 high of 127 percent, it fell to 97 percent, the lowest in almost two years, showing the relationship’s transient nature.
Issuers such as Chicago Park District are set to sell debt today, joining municipalities nationwide in offering $4.8 billion in long-term obligations this week, Bloomberg data show.
In the 10-year portion of the market, benchmark munis are yielding 2.88 percent. The interest rate compares with 2.71 percent for similar-maturity Treasuries. The ratio of the two yields is about 106 percent, compared with an average of 93 percent since 2001.
Following is a pending sale:
University of Washington in Seattle, with almost 51,600 students, plans to issue about $143.4 million in federally tax- exempt debt next week, partly to finance renovations of the football team’s Husky Stadium and to build a new baseball park. The bonds are rated AA+ by Standard & Poor’s and mature annually on July 1 through 2041. A unit of JPMorgan Chase & Co. is leading the sale.