Markets

S&P upgraded the bonds to AA-plus and Fitch revised the outlook on the AA-rated debt to positive from stable.

Short triple-A yields have risen more than 30 basis points over the past eight sessions while the long bond has risen 19, per Refinitiv MMD data.

The taxables are the city's first social bonds, which S&P said are aligned with the International Capital Market Association's Social Bond Principles.

Triple-A muni yields rose another five basis points on the short end while UST rose up to seven. UST yields are the highest since 2007.

Improved commitments to pension funding, coupled with other changes to the two states' retirement systems, have yielded bond rating upgrades for both.

Municipals saw more cheapening on the short end Friday as selling pressure persisted all week.

The healthcare chain won breathing room as its letter of credit provider waived a rating covenant and removed an event of default provision for junk downgrades.

"Everyone is trying to figure out when the outflow cycle is over," said Craig Brandon, co-director of municipal investments at Eaton Vance.

"The labor noise is probably a little louder and is probably going to be with us for longer than we expected in late 2021 and is probably going to result in lower margins for a bit of time," S&P's Suzie Desai said.

But governor and an analyst caution about appropriating "excess revenues" before an audit.