State Treasurer Bill Lockyer announced Tuesday that he stopped taking orders for the state's general obligation bond sale Tuesday after investors purchased $6.54 billion -- $2.54 billion more than the original $4 billion target.
The additional money should go toward construction projects around the state that slowed or stopped after officials froze California's Pooled Money Investment Account in December. A board that oversees the account last week authorized $500 million in payments toward construction projects contingent on Lockyer selling at least $4 billion in bonds this week.
The state benefited from heavy demand from individual retail investors, who purchased nearly half of the bond total. Institutional investors, such as mutual funds, bought the remainder.
California offered high yields that ranged from 3.20 percent to 6.10 percent based on maturity date. Investment experts said the yields were higher because the state's credit rating had been downgraded this month. The higher yields, along with California's track record of repayment and a nine-month absence from the bond market, contributed to the demand, said Jason Dickerson, a fiscal expert with the Legislative Analyst's Office.
@Nyx.CommentBody@