ALAMEDA, Calif. – With tax-exempt yields up dramatically this week, California said it would reduce next week’s planned tax-exempt issuance by more than $1 billion, while selling more taxables.

The state will upsize Friday’s planned taxable general obligation bond pricing by $750 million, to $2.75 billion, while cutting next Tuesday’s scheduled tax-exempt GO pricing by $750 million to $1 billion, Tom Dresslar, spokesman for Treasurer Bill Lockyer said in a statement late Wednesday. The deal will include $2.5 billion in federally subsidized Build America Bonds.

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