BUSINESS

Municipal Bond Selloff Accelerated By Detroit Bankruptcy Filing

07/19/2013 12:59 pm ET | Updated Sep 18, 2013

NEW YORK, July 19 (Reuters) - U.S. municipal bonds fell the most in nearly a month on Friday as news that Detroit had filed for the largest municipal bankruptcy in U.S. history added to a slew of concerns about the $3.7 trillion market.

Selling picked up in the afternoon. Yields on longer-dated triple-A maturities ranging from 2037 to 2043 rose by 9 to 11 basis points, according to a preliminary read on Municipal Market Data's triple-A scale.

The rise was the steepest since June 24 after the U.S. Federal Reserve rattled markets with plans to scale back its bond buying program, pushing yields on both the 10- and the 30-year maturities up as much as 17 basis points in a single session. Prices move inversely to yields.

(Reporting by Edward Krudy; Editing by Tiziana Barghini and Chizu Nomiyama)

States Whose Residents Are Most Affected By The Fiscal Cliff
Suggest a correction