California debt yields.

California Government yield curve

Tom Peturno quotes some bond traders:

Traders said the state may be paying an annualized yield close to 8% on 30-year bonds in the offering, a return that would look appealing to many big investors compared with rates on Treasuries or corporate bonds.

Close to 8%? The last offering by California yielded 5.65%. The former is taxable the later is not, the the new offering is said to have more Build America Bonds which offer federal interest rate subsidies.

8% is a lot to pay for California, greater than any 30 year growth rate in the economy here. We will see what happens tomorrow in the market. The yield curve posted were from quoted in the last offering.