Individual California investors snatched up more the $690 million worth of state bonds this week. It the first time the state treasurer's office has made such a concerted effort to sell state bonds directly to residents.
Treasurer Bill Lockyer says the two-and-a-half billion dollar offering over two days was successful. He says it was important to let state residents know that they can invest in California's future by buying a $5,000 bond.
Lockyer says it is a good deal for the state and residents.
Lockyer : Both state and federal government does not tax the interest on these bonds, so that, in effect, adds to the effective rate of return.
Insurance companies, mutual funds and other institutional investors snapped up the remaining bonds this morning. Lockyer says he'll make another pitch to small investors this fall when the state tries to sell its next round of bond funding.
