New York City Said to Begin $695 Million Tax-Exempt Bond Sale

New York City began offering $695 million of tax-exempt general obligations to individuals today in its first bond sale since Mayor Bill de Blasio took office on Jan. 1.

The deal includes a portion maturing in March 2034 that is being offered at a preliminary yield of 4.125 percent, according to four people familiar with the sale who requested anonymity because the pricing isn’t final. The bonds are rated AA, the third-highest level from Standard & Poor’s.

The initial yield is about 0.82 percentage point more than benchmark munis, data compiled by Bloomberg show.

To contact the reporter on this story: Brian Chappatta in New York at bchappatta1@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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