New York City Shrinks Size of Mega Bond Deal Amid Market Tumult

New York City Mayor Zohran Mamdani just faced his administration’s first big test in the municipal-bond market amid growing concerns about the city’s finances.

The result? The city sold $2.3 billion of general-obligation bonds on Wednesday, smaller than originally planned. New York’s borrowing penalty was higher than a similar sale last year though some yields came in tighter than initial pricing, according to a preliminary wire seen by Bloomberg.

James Pruskowski, managing director at Hennion & Walsh, said in an email that the city’s deal was well-received despite a “challenging” market backdrop. There’s been a broad rout in the ...