New York City bond investors are beginning to sell New York City debt, with prices falling and interest rates rising to their highest levels in months due to concerns over Mayor Mamdani's plans to stimulate the economy under a socialist agenda. The move is seen as a financial incentive for investors in NYC bonds, as they hold the roughly $100 billion in city debt and are triple tax-free returns. However, this shift appears to be due to fears about the potential for increased spending and taxes on the city, which could lead to more jobs and taxpayers leaving the city. Moody's Ratings has said it may downgrade the city's bond rating from its current AA level to a potentially low level. The action coincides with the decline in bond prices and higher yields, meaning it will cost more for the city to borrow in the future. If bond holders who remain in Mamdoni's corner get skittish, these costs will grow even more.