Puerto Rico Tax-Increase Plan Fuels Longest Debt Rally of 2015
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Puerto Rico bonds are staging their longest rally of 2015 as lawmakers’ agreement to raise the sales tax eases concern over a potential cash crunch.
Debt of the junk-rated commonwealth has gained for nine straight days through Tuesday, S&P Dow Jones Indices show. The securities haven’t gained for a longer stretch since September. The securities have trimmed their 2015 loss to 0.1 percent, still the worst annual start since at least 2007. The $3.6 trillion municipal market has gained about 0.05 percent this year.