Brown Upgraded in Market as California Gap Shrinks: Muni Credit

Governor Jerry Brown’s campaign to shrink California’s deficit helped the most-populous U.S. state slash borrowing costs as much as 88 percent on a $5.4 billion note sale, exceeding yield declines in short-term municipal securities.

California took orders for two-thirds of the revenue-anticipation notes from individual investors, said Tom Dresslar, a spokesman for Treasurer Bill Lockyer. A tranche maturing May 24 was priced at 0.38 percent, while the bulk of the bonds, maturing June 26, were offered at 0.40 percent.