Treasury Issues “Junk” Bonds To Finance Local Public Works The US Treasury has been quietly helping municipalities raise money for public-works projects, increasingly from foreign sources. Municipal projects are generally awarded to contractors willing to comply with strict federal hiring guidelines. The completed projects will likely employ, if anyone, mostly public union employees. In order to attract investors, the interest offered on the “Buy America Bonds” is higher than that of municipal bonds, which are the usual method of financing municipal projects. The taxable bonds, maturing in an average of 29 years, yield of 5.76%, a premium of 185 basis...