- Chicago originally planned to sell $643 million in debt Aug. 7
- Tennessee hospital system that delayed bond deal also priced
Two municipal bond sales that were previously delayed during a particularly volatile stretch in fixed income markets were offered to investors Wednesday.
Chicago returned to the $4 trillion state and local government debt market one week later than planned, as did Erlanger Health, a hospital system based in Chattanooga, Tennessee. The sales come after two key economic data releases showed inflation easing — increasing confidence among investors that the Federal Reserve will cut interest rates in September.
The Windy City had originally planned to issue $643 million in tax-exempt bonds on Aug. 7 but moved the deal to day-to-day status to await a more stable market. Erlanger Health had delayed a roughly $316 million deal on Aug. 8, citing “recent market volatility and yield expectations falling short” of their targets.
Bloomberg Markets
By Shruti Singh
August 14, 2024