Auction-Rate Failures Rise

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While the debate continues over whether banks and brokerage houses had any obligation to keep the auction-rate market open, almost 70% of the auctions failed this week.

According to Bloomberg yield on the muni-bond debt traded on the auction-rate market "averaged 6.52 percent as of Feb. 28, up from 3.63 percent before demand evaporated in January."

Douglas A. McIntyre