California Sells $2.1 Billion of Munis Amid Newsom Recall
- Ten-year California GO bonds trading at above average yields
- Spread widening after vote may create buying opportunity
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California sold $2.1 billion of tax-exempt general-obligation bonds Tuesday, just as its citizens cast their ballots to decide the fate of Governor Gavin Newsom in a recall vote.
Despite the political tumult, the sale came on the heels of an outlook boost to positive from stable. Credit ratings for the state, which is the largest issuer of muni bonds, are at the highest levels in decades as demand for muni-bonds soars.