California came to market yesterday with the fourth-largest municipal deal in history amid a backdrop of declining yield levels in the secondary market.

The Golden State priced $6.85 billion of taxable general obligation bonds to fund infrastructure projects, including $5.23 billion of Build America Bonds. The deal marks the largest BAB deal to date, by far, and was upsized substantially from an expected $4 billion. Interest on the entire deal is federally taxable, but exempt from state income taxes.

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