Prices on some commonwealth securities continued to fall Tuesday. General-obligation bonds maturing July 2035 traded at an average price of 65.8 cents on the dollar, the lowest since the bonds were first sold at 93 cents in March 2014. The price has dropped 15 percent since Friday, according to data compiled by Bloomberg.
Tuesday is the final day of the state’s current budget year, and top officials turned to planning for a Wednesday in which Illinois government has limited authority to spend money. It’s also the day a cash-strapped CPS is due to make a $634 million pension payment.
The White House threw cold water Monday on the notion of bailing out Puerto Rico from its financial crisis, instead urging Congress to consider changing the law so the island can declare bankruptcy.
But U.S. investors would actually have much more to lose in a potential Puerto Rican default than in a Greek default. The reason is that Puerto Rico’s bonds are trading in the U.S. municipal bond market, while the vast majority of Greek debt is in the hands of the International Monetary Fund, the European Central Bank and eurozone countries.
Spain’s Prime Minister Mariano Rajoy said on Tuesday a Greek exit from the euro could send a message that the common currency union is reversible and open up the possibility that other countries might follow suit.
Citing a “significantly underfunded” budget for the new fiscal year, the Alaska Department of Health and Social Services has told Medicaid providers they won’t be seeing the usual rate increases for inflation.
Finance Minister Joaquim Levy is raising taxes and cutting spending to reach that target, which is key to showing whether public debt is sustainable in Brazil. His efforts are designed to boost investor confidence and stave off a sovereign-credit downgrade after Moody’s Investors Service last year lowered its outlook on Brazil to negative.
France’s public debt burden rose 51.6 billion euros ($57.2 billion) in the first quarter to EUR2,089 billion, French statistics agency Insee said. That total represents 97.5% of gross domestic product, compared with 95.6% in the fourth quarter of 2014.
Eurozone consumer prices rose for the first time in six months during May, a victory for the ECB in its campaign to avoid a debilitating period of deflation, during which businesses and households might hold back on spending in the expectation that they will get better deals in the future.
Drugmakers operating in Greece said they’re owed 1.05 billion euros ($1.2 billion) by the government for medicine supplied to hospitals and the state social insurance fund.
Financial soundness of South Korean households worsened in the first quarter as their debts snowballed on the back of low interest rates, a report showed Tuesday, adding to persistent concerns that a looming U.S. rate hike may unleash credit risks.
China’s benchmark interest-rate swap dropped this quarter by the most in six years as the central bank stepped up monetary easing to combat an economic slowdown.
Canada’s economy unexpectedly shrank for the fourth month in a row in April as oil and mining slumped, opening the door to a second interest-rate cut from the central bank this year.
The European Central Bank’s first full quarter of quantitative easing hasn’t stopped the region’s government bonds from heading for their worst performance on record.
Supply chain experts say that Greek importers and exporters could be affected as soon as this week by the country’s decision over the weekend to shut down its banking system for at least seven days as it seeks to prevent money from flooding out of the country.
“In June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece,” the U.K.’s Royal Mint said in a statement.
When Chicago Public Schools announced on June 24 that it would borrow $1 billion to make a $600 million-plus pension payment due June 30 an eerie feeling spread across bond investors and taxpayers alike. It was the same feeling that gripped investors when Moody’s Investors Service downgraded Chicago’s credit rating to junk based almost entirely on the city’s pension problems.
Few things in America have lasted 150 years. San Francisco’s sewer system is a working relic but one that works
Gold & Silver
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