Detroit would sell its first general obligation bonds since exiting bankruptcy in December 2014 under a proposal to refund up to $660 million of outstanding bonds, Reuters reported yesterday. The city council sent the plan to refund up to $275 million of unlimited tax GO bonds sold in 2014 and up to $385 million of limited tax GO bonds sold in 2010 and 2012 to its Budget, Finance and Audit Committee for consideration. The outstanding bonds were issued through the Michigan Finance Authority and backed by the city's share of distributable state aid payments. Ten and 30-year yields on Municipal Market Data's benchmark triple-A scale are at or near all-time lows, driven by big investor demand for debt sold by states, cities, schools and other municipal issuers. If the GO bond refundings are approved by the city council committee, the measures would head for a full-council vote on June 21. The issuance also needs approval from the Detroit Financial Review Commission, the city's post-bankruptcy oversight board, which meets on June 27.
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