May 14, 2015 / 4:01 PM / 2 years ago

Chicago bond trade lands at 315 bps spread over triple-A

May 14 (Reuters) - A $2 million block of Chicago general obligation bonds maturing in 2023 sold at nearly 315 basis points over top-rated munis on Thursday, according to Municipal Market Data, as the market continues to digest the city’s downgrade to junk two days ago.

The bonds, which carry a 5 percent coupon and yielded 3.75 percent when they were originally issued in March 2014, sold off cheaply at 5.119 percent and 99.25 cents on the dollar on Thursday.

They last traded two months ago at 107.044 cents on the dollar and 3.94 percent - a sharp 118 basis point uptick in one trade.

Reporting by Hilary Russ

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