California Said to Raise Yield on Longer Maturities of G.O. SaleBrian Chappatta
California raised yields on some longer maturities in the final day of its first debt sale since getting an upgrade from Standard & Poor’s in January.
The state is selling about $2.2 billion in tax-exempts this week. It began offering the securities to investors such as mutual funds today, after two days of marketing to individual buyers.
Bonds maturing in 2023 were offered at a preliminary yield of 2.56 percent, up from 2.54 percent yesterday, according to four people familiar with the deal, who declined to be named because the prices weren’t final.
On longer maturities, yields rose even more from levels at which the state marketed to individual investors the past two days. For debt due in February 2033 with a 5 percent coupon, California is offering the debt today with a 3.54 percent yield, up from 3.39 percent yesterday.