In Norwalk, which also had an extra bidder than in a 2012 sale, the debt will pay for projects including rebuilding a seawall at Calf Pasture Beach. The city of 87,000 has Moody’s top grade. While benchmark yields rose a full percentage point in the past year, Norwalk’s borrowing costs climbed about half that amount, said Hamilton, the finance director.
“We’re very happy with the sale -- we had a lot of interest in our bonds,” he said. “Although Detroit is a big headline and is a concern for municipal-bond buyers, it had specific factors that aren’t applicable to the broad majority of municipal issuers across the country.”
Issuers this week will borrow at the lowest municipal interest rates since July 24. At 2.87 percent, yields on benchmark 10-year munis compare with 2.6 percent for similar- maturity Treasuries.
The ratio of the yields, a gauge of relative value, is about 110 percent, compared with an average of 93 percent since 2001. The greater the figure, the cheaper munis are compared with federal securities.