SAN FRANCISCO (Reuters) - California completed its sale of $1.99 billion of general obligation bonds on Thursday, with yields on the debt ranging from 0.63 percent for its 2-year maturity to 4.13 percent on its 26-year maturity.
Institutions ordered just over half the debt after retail investors ordered $930.7 million of the bonds, or 47 percent of the debt, during their two-day retail order period on Tuesday and Wednesday, the state treasurer's office said in a statement.
Proceeds from the debt, rated A1 by Moody's Investors Service and A- by both Standard & Poor's Ratings Services and Fitch Ratings, will be used to refinance other bonds to save California an estimated $250 million in debt service payments, according to the treasurer's office.
Strong retail orders for California's debt tracks with sustained interest in U.S. municipal debt funds.
They posted their 13th consecutive week of net inflows in the week ended February 29, although the inflows decreased for a second week in a row, falling to $357 million from $883 million in the previous week, according to data released by Lipper on Thursday.
The four week-moving average of the net inflows in the most recent week was $843 million, according to Lipper, a unit of Thomson Reuters.
(Reporting By Jim Christie; Editing by Bob Burgdorfer)