SAN FRANCISCO — Spreads between what a California general obligation bond yields and the rate on a triple-A rated bond have narrowed sharply over the past two years, despite only small improvements in the state’s financial health.

State officials like to give some credit for the trend to a smoother budget process of late, but analysts say the tightened spreads mainly reflect the fact that investors have been aggressive buyers of high-yield paper, such as California’s, as interest rates have sunk in general and supply has been scarce.

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