A Treasury market rally, low supply and strong demand for high-yielding securities greeted Detroit when it sold $135 million of debt yesterday, the first sale of bonds backed only by the city’s promise to repay since it filed a record-setting bankruptcy five years ago, Bloomberg reported. The conditions allowed Detroit to secure lower interest rates than initially expected, leaving it paying even less than some borrowers that haven’t reneged on their debts. Bonds were priced with yields ranging from 3.36 percent on a 2020 maturity to 4.95 on those due in 2038 - tighter than what was first offered. The city also was able to increase the size of the deal from $111 million to $135 million, an indication of strong demand.
