Mar. 11, 2010 - The State today wrapped up its $2.5 billion General Obligation bond sale, after further reducing yields and increasing the size of the offering by $500 million due to strong investor demand. Of the $2.5 billion, retail investors ordered $1.38 billion, or 55 percent.
The final yields ranged from 1.17 percent for the 2012 maturity to 5.65 for the 2040 maturity. Retail investors ordered their bonds Tuesday and Wednesday, and institutional investors ordered theirs today.
The strong retail demand already had led the State on Wednesday to drop expected yields in the 2012-2014 and 2018-2021 maturities. Today's demand allowed for reductions in the 2027-2029 and 2036 maturities. The lower yields will reduce taxpayers' borrowing costs.
California State Treasurer Bill Lockyer:
"The results of this sale show that investors recognize what state officials have been saying for some time now – that California is a sound investment. This is a great deal for investors and it's a great deal for our state. The money we've generated will let us continue with vital infrastructure investments in California schools, hospitals and roads."
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