NEW YORK - Bloomberg reports good news from Illinois' bond market -
Municipal bonds from Illinois rallied to a one-month high after lawmakers broke through decades of political gridlock to pass a measure addressing the nation’s worst-funded state pension system.
About $4.4 million of taxable Illinois general-obligation bonds maturing in March 2016 traded today at an average yield of 1.8 percent, the lowest since Nov. 8, data compiled by Bloomberg show. Yields move inversely to prices. The volume that changed hands was the highest since July.
In a span of six minutes yesterday, lawmakers broke through the political impasse that Democratic Governor Pat Quinn said in January “has confounded legislatures and governors for 70 years.” The state Senate and then the House approved a rescue of the state pension system, which faces a $100 billion shortfall.