CHICAGO — With headlines over its budget struggles and recent rating downgrades subsiding, Chicago plans this week to sell a good chunk of a $804 million new-money and refunding general obligation issue that was put on hold earlier this month.

While some of the market volatility that helped sideline the deal earlier has eased, it will still have to compete for buyers facing $11 billion in supply — including Illinois’ $1.46 billion tobacco bond issue. Chicago is tentatively set to price on Wednesday $213.6 million of Build America Bonds and $467.5 million of non-BAB taxable new-money and refunding bonds. The city is holding back a series of $123 million of tax-exempt refunding bonds as rising interest rates have cut into savings.

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