From Dow Jones:
Sales of California's $10 billion revenue anticipation notes slowed on Tuesday, with the state reporting total orders of $5.57 billion for the securities.
Sales had totaled $4.43 billion Monday, the first day of a two-day order period, leaving just $1.14 billion sold by 1 p.m. Pacific time, Tuesday, according to State Treasurer Bill Lockyer's office.
The notes were sold into a rapidly declining municipal bond market, where supply was overwhelming demand and where dealers were kicking out bonds at almost any price in order to clear inventories as more bond deals kept flowing.
Individual investors chipped in for $4.86 billion of $8 billion securities that will come due next June 28, and for $5.57 million of $2 billion in notes maturing next May 25. The June notes offer higher yields, quoted Tuesday at 1.5%, while the May notes were quoted at 1.25%. Each series was at the outer limit of preliminary yield ranges offered Monday.
Several hours of trading were still left in California's day, after which the notes will be offered to institutional investors Wednesday.