The municipal market was weaker yesterday, following Treasuries, as California came to market with $3.2 billion of bonds, the week's largest transaction.
Lehman Brothers priced the California economic recovery bonds in two series. Bonds from the $1.3 billion Series A mature from 2008 through 2011, with a term bond in 2023. Yields range from 2.07% with a 3% coupon in 2009 to 4.10% with a 4% coupon in 2023. Bonds maturing in 2008 and a portion of bonds maturing in 2009 were decided via sealed bid. Bonds from the $1.9 billion Series B contain seven different maturities in 2023, with yields ranging from 2.60% to 2.83%, and coupons ranging from 3% to 5%.