Chicago to Pitch $800 Million Bond Sale Amid March Muni Slump

Chicago is set to test the municipal bond market as war in the Middle East upends global markets.

The third-largest US city is scheduled to sell $800 million in general obligation debt Tuesday, on the heels of a downgrade from Fitch Ratings.That includes $508 million taxable and $292 million tax-exempt, according to bond documents dated Feb. 27.

Since then, the Iran war has pushed oil prices to new highs, and rattled stocks and bond prices, even extending to state and local government debt.

Yields for benchmark 10-year municipal debt rose Monday for a sixth-straight session in lock step ...