State of Texas Short-Term Notes at Record Low Interest Rate
Texas Comptroller Susan Combs recently announced the sale of $5.4 billion in for Texas short-term notes at a record low interest rate.
Last year Wall Street rating firms gave their highest rating ever to the Texas Tax and Revenue Anticipation Notes, or TRANs. This year over $5.4 billion of the notes were sold at an interest rate of .1326 percent which is the lowest rate ever received for the one-year notes.
Comptroller Combs says the high rating has affected the interest rate.
“The best ratings from Wall Street ratings firms and strong demand for Texas notes helped drive down the borrowing cost,” Combs said. “Buyers bid about $19.6 billion, more than triple the amount offered for sale. The competitive bids for today’s sale show that investors are very confident in the Texas economy and the direction it’s heading.”
According to the Comptroller’s office, revenue from TRANs sales are used to help fund public school payments and regulate cash flow between the beginning of fiscal years and the arrival of tax revenue.