Sept. 13 (Bloomberg) -- California began taking orders from individual investors for $5.4 billion of notes due June 2012, offering yields of as much as 0.55 percent as one-year tax- exempt rates lingered near the lowest in more than a decade.
The revenue-anticipation notes, meant to bolster cash flow until more tax collections arrive, offer yields ranging from 0.40 percent to 0.55 percent, Dana Obrist, spokeswoman for senior manager Wells Fargo & Co., said in an e-mail.
California’s individual pricing range is 18 basis points to 33 basis points above today’s 0.22 percent yield on AAA one-year tax-exempt debt, according to data compiled by Bloomberg.
One-year tax-exempt yields declined to 0.30 percent last week, according to a Bond Buyer index. That’s down from 0.44 percent a year earlier and 3.97 percent at the end of 1999.
Revenue anticipation notes are a type of short-term municipal bond that the state offers when cash is low and repays from later tax collections.
--Editors: Walid El-Gabry, Stephen Merelman
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