Puerto Rico yields rise after S&P cuts rating to junk
NEW YORK (Reuters) - Some Puerto Rico municipal bond yields rose above 10 percent on Tuesday after Standard & Poor's Ratings Services cut the commonwealth's credit rating to junk. A Puerto Rico general obligation refunding bond maturing in 2036 hit a yield of 10.16 percent shortly after S&P downgraded the cash-strapped territory's credit rating, from 9.66 percent earlier in the day. The iShares U.S. Municipal Bond exchange-traded fund dropped about half a percent after the downgrade. One market participant said the cut to BB+, one level below investment grade, was a surprise because it came so soon after S&P had put the Caribbean island on notice for a downgrade. "It's a little late in the day to see what the true impact is going to be," said Gary Pollack, head of fixed income trading at Deutsche Bank in New York. (Reporting By Steven C. Johnson; Editing by Chris Reese) (This story was refiled to fix name of fixed income trader)
