Skip to content
Subscriber Only

Illinois Punished by Market as Deadline Nears Amid Fighting

  • State’s yields rise to record over benchmark amid gridlock
  • Less than two weeks remain in regular legislative session
Illinois representatives gather on the House floor during session at the Illinois State Capitol Tuesday, May 31, 2016, in Springfield, Ill., as lawmakers press ahead on the last day of the spring legislative session. Illinois Gov. Bruce Rauner proposed a short-term budget fix on Tuesday in a last-ditch effort to give the state some temporary stability during a nearly yearlong spat between the Republican and Democratic lawmakers over a spending plan.
Photographer: Seth Perlman/AP Photo
Updated on

With less than two weeks left in the regular legislative session, Illinois lawmakers and Governor Bruce Rauner are still divided on how to end the worst-rated state’s nearly three-year budget impasse. Investors aren’t pleased.

Bondholders are demanding yields of 4.49 percent on Illinois’s 10-year bonds, some 2.45 percentage points more than those of benchmark tax-exempt debt. That’s the biggest gap since the Bloomberg indexes began in January 2013.