04:07 PM EDT, 03/21/2024 (MT Newswires) -- California state officials plan to offer $2.6 billion of general obligation bonds next week in the second-largest offering of municipal debt this year, according to a preliminary prospectus for the deal filed this week.

Lead managers for the offering scheduled to commence next Tuesday are JP Morgan (JPM) and Wells Fargo ( WFC ) . The deal will be split equally into two $1.3 billion offerings, which have attracted more than 20 firms as co-managers.

According to Bloomberg, California's steep tax rates have traditionally fueled buyer demand by the state's higher-income residents for the tax-exempt bonds. The prospect of interest rate cuts by the Federal Reserve later this year also may attract investors wanting to lock in yields.

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