California tech boom drives muni-bond rally

San Francisco

BOND investors are betting that a resurgent technology-fuelled boom in the Golden State is not just California dreaming.

The state, which faced ballooning budget shortfalls after the housing crash, is selling about US$961 million in general-obligation bonds this week, its last sale of the securities this year. California debt is outperforming amid a rally in the municipal market as the state's finances benefit from the fast-growing economy.