Bond-Market Penalties Fade for States Seeing a Federal Windfall
- Coming influx of federal cash eases prior credit concerns
- New York bond spreads dip to lowest levels in three months
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As far as Wall Street bond traders are concerned, President Joe Biden’s rescue has effectively erased the fiscal problems of America’s states.
The nearly $200 billion of direct aid coming to states from Washington is promising to make up for the fiscal hit of the pandemic, with the amount for some poised to be more than enough to close their budget shortfalls.