California Plans Estimated $2 Billion October Bond Sale
California will sell an estimated $2 billion of general-obligation bonds this month after benchmark yields on municipal debt touched a three-month low Sept. 27, a spokesman for Treasurer Bill Lockyer said.
The offering, scheduled for the week of Oct. 21, will include a portion to refinance higher-yielding debt, Tom Dresslar, the spokesman, said today by telephone. The specific amounts of the sale and the refunding haven’t been set, he said.
“It depends on how the market looks,” he said.
Separately, New York plans to sell $4.9 billion of debt in the fourth quarter, down from $6.1 billion during the same time last year, state Comptroller Thomas DiNapoli said. He’ll offer about $3 billion of that debt in October.
States and local governments have sold $229.7 billion of long-term, fixed-rate debt this year, data compiled by Bloomberg show. That’s down about 13 percent from the same time last year.
Lockyer has said he plans to offer an estimated $12.5 billion of debt in the next 18 months. As of Sept. 1, California had $79.4 billion in long-term bonds outstanding, out of $147.8 billion authorized by voters, according to Lockyer’s website.
The yield on benchmark 10-year bonds climbed to as much as 2.72 percent today, after falling to about 2.7 percent Sept. 27, the lowest since June and down almost 0.5 percentage point from a three-month high of about 3.2 percent Sept. 6, data compiled by Bloomberg show.
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