California Refunds Debt With Yields a Third Below 2009 Level
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California, its fiscal progress easing the premium demanded by investors, saved $152 million by refunding debt with the sale of $2.4 billion in general-obligation bonds at yields about a third less than two years ago.
The state’s first general obligations offered this year were priced yesterday to yield 3.17 percent on 10-year maturities, as much as 109 basis points above top-rated tax-exempt debt. That compares with a 160 basis-point premium on similar bonds sold in March 2009. A basis point is 0.01 percentage point.