Demand for LGFA bonds cools as Fed’s QE exit saps appeal of debt

Fri, 21 Jun 2013

June 21 (BusinessDesk) – Demand for Local Government Funding Authority bonds, strongly overbid since the first tender in February last year, cooled this week as the Federal Reserve’s likely exit from its quantitative easing programme sapped demand for interest rate-sensitive assets. Investors offered to buy $547 million of the LGFA’s May 15, 2021, bonds at a tender on Wednesday, about twice the $270 million on offer. They were sold at a weighted average yield of about 4.46 percent. Bids of $30 million were received for the $15 million of Dec....

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