Ohio sold $240 million worth of long-term municipal bonds yesterday. The bonds carried an annual yield of 5.21 percent, 18 percent higher than last year. Ohio’s long-term general-obligation credit is rated two notches above New York State’s, which also hopes to issue long-term bonds soon.
Meanwhile, Massachusetts sold $750 million worth of short-term notes on the third try, paying 2.2 percent. Over the past few years, such notes have often yielded less than 2 percent.
In the past year, the Federal Reserve has cut its main interest rates by more than 70 percent, showing the Fed’s limited power to control the market’s interest rates in today’s environment.
However, these recent successful muni-bond sales this week, in addition to similar sales by Kentucky and others, are something.
California is up next week, with a plan to issue $4 billion in short-term notes.
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