PUBLIC FINANCE TRENDS
Yield Spread Analysis
Graph 1, above left, measures the spread between a NBQ AAA IL bond issue and a BQ AAA IL bond issue. This comparison was made to analyze the benefit of BQ bonds. The analysis indicates that the BQ benefit in today’s Illinois market is still quite muted.
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INVESTMENT ADVISORY SERVICES: FEATURED MARKET DATA
U.S. Deficits Fueling Increased Debt Issuance
Additional tax revenue from rising GDP in 2018 has failed to offset tax cuts and higher spending, resulting in wider deficits. To finance the growing deficits, the Treasury is boosting sales of Treasury bills, notes and bonds. Many analysts and investors forecast that these developments will lead to higher borrowing costs for the U.S. government.
