Municipal Bond Yields Rise
Municipal bond yields inched up Monday amid lingering concern about Orange County’s bankruptcy filing and a rebound in yields on U.S. Treasury securities.
“I still think people are afraid there will be another Orange County,” said Paul Hylle, who manages about $1.6 billion in funds at IDS Financial Services.
Muni yields both in and outside California jumped last week as some investors bailed out of bonds. The market had calmed Friday, but many analysts said investors remain uneasy.
Bonds issued by Orange County continue to be priced from 60 to 85 cents on the dollar, depending on the security, but dealers say few are trading at those fire-sale prices.
Most major California muni bond mutual funds saw their prices erode by 1 to 3 cents a share Monday, reflecting further downward pressure on California bond values in general.
Nationally, the Bond Buyer muni yield index rose to 7.06% on Monday from 7.04% on Friday.
More to Read
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
