As California struggled to balance its budget, it got a bit of good news in the municipal bond market — the Department of Water Resources found buyers for $348.7 million of power supply revenue bonds that failed to sell in November.

The sale — which was technically a remarketing of bonds undergoing a mode conversion from a weekly variable rate to a fixed rate — shows that demand has to some degree returned to the long end of the California muni market. It was the state’s first big deal of the year.

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