Muni Sales for New Projects Hit 10-Year High as Economy Revives

  • Issuance already at $65 billion in 2021, up 31% year over year
  • Work was delayed or trimmed amid the pandemic: Ramirez’s Block
Buyers Flee to Municipal Bonds on Biden's Tax Plan
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U.S. states and cities are turning to the municipal-bond market to raise money for new projects at the fastest pace in at least a decade, a sign of optimism as tax revenue improves with the reviving economy and as federal aid pours in.

Localities issued about $65 billion in long-term municipal debt in the first four months of 2021 solely for new projects, a 31% jump from the same period of last year, according to data compiled by Bloomberg. The tally marks the most bond sales for new endeavors, known as new-money issuance, to begin a year since 2010.