Yesterday, Grant Street Group hosted an $8 billion sale of Tax and Revenue Anticipation Notes (TRAN) for the Texas Comptroller’s Office. This was the 14th TRAN sale held on the Comptroller’s private label website, TRANTexas.com. The Comptroller’s office received 67 bids worth $22.77 billion, 2.85 times the amount offered for sale. Money from this sale will help fund expenditures, such as public-school payments made early in the fiscal year, before the arrival of tax revenues later in the year.
“Texas remains a very solid investment, and we are pleased with the market’s reaction to this sale,” said Texas Comptroller Glenn Hegar. “A net interest rate of 1.34 percent on what is essentially a 1-year note, while 1-year Treasury notes are yielding about 1.7 percent, is indicative of Texas’ strong credit and track record of responsible fiscal management. That’s clearly very appealing to market participants in the current interest-rate environment.”
Read the Comptroller’s full press release here.