Thursday, September 23, 2010
Unbelievable Gap Closure
Bloomberg:California last sold general-fund backed bonds in June, when it offered about $120 million of debt for veteran’s homes. The state sold $450 million of public-works bonds in May and $5.9 billion of debt in March.
The standoff drove the extra yield investors demand on 10- year California bonds to 119 basis points above AAA rated municipal securities today from as low as 109 basis points in August, Bloomberg Fair Value Index data show. A basis point is 0.01 percentage point.
Schwarzenegger and legislative leaders will hammer out the details of the agreement when they meet again in Sacramento on Sept. 27th.
Bullshit. This is all about bond rollovers.