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Tax-Exempts Tumble as California Sells $10 Billion: Muni Credit

Ten-year, top-rated tax-exempt yields, which move inversely to prices, climbed to a four-month high as California led states and local governments issuing $16.3 billion this week, the most in at least seven years.

California yesterday sold 44 percent of its $10 billion in notes to individual investors. The securities today are yielding 1.25 percent for May maturities and 1.5 percent for those due in June, according to a person with knowledge of the deal. That’s about 0.99 and 1.24 percentage points more than top-rated one-year municipal bonds, according to a Bloomberg Valuation index.