Officials in a few states have taken steps recently to get cash straight into the hands of some residents, over and above the stimulus payments approved by the U.S. Congress.
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Freshly cleaned subway trains sits at the MTA Maintenance Facility in Queens. Scott Heins/Getty Images
The municipal bond market is starting 2021 on a strong note amid robust demand, light supply of new issues, and expectations of fiscal relief for state and local governments as well as potentially higher income taxes with full Democratic control in Washington.
A key indicator of tax-exempt bond demand, the yield ratio of 10-year triple-A munis relative to the 10-year Treasury note, stands at 66% and is at its lowest level in 20 years. The ratio began the year at around 75% after peaking at over 200% during the market turmoil last March. It has averaged close to 100% over the past 20 years.
Jan. 10, 2021 10:00 am ET
Leaders of New York’s Metropolitan Transportation Authority are expected to decide this month whether to raise fares on New York City’s subway and bus systems and regional commuter rails at a time when the Covid-19 pandemic has taken a financial toll on many of its riders.
The MTA, the operator of the nation’s largest transit system, instituted a schedule a decade ago of raising fare and toll revenues by about 4% every two years to keep pace with inflation. The authority’s board members are slated to vote on increases to fares on Jan. 21 and on tolls next month.
State and local governments won’t receive direct aid if the latest version of the $910 billion stimulus package is signed into law and when it comes to employment at municipalities, there is a lot of lost ground to recover.