CHICAGO Oct 13 With Illinois' political and
fiscal problems showing no sign of abating, investors on
Thursday demanded fat yields for the low-rated state's $1.3
billion of general obligation refunding bonds.
Illinois' so-called credit spread over Municipal Market
Data's benchmark triple-A yield scale widened from 162 basis
points before the sale to 200 basis points for bonds due in 10
years, according to MMD. The wider spread indicates growing
investor unease over the state's ability to pass a balanced
budget and address its huge unfunded pension liability.
(Reporting by Karen Pierog; Editing by Matthew Lewis)