California Plans to Sell $800 Million in Bonds

California plans to sell $800 million in general obligation bonds today, amid strong investor appetite for tax-free securities.

The bonds, which will be sold in maturities ranging from 2007 to 2036, will finance construction of schools, prisons and other voter-approved projects, according to the state treasurer’s office.

Market yields on long-term California general obligation bonds have declined since November. The tax-free yield on a Bloomberg News index of 20-year California securities was 4.39% on Tuesday, down from 4.63% early in November.

The San Francisco Public Utilities Commission sold $609 million of revenue bonds Tuesday to finance construction improvements designed to shore up dams, tunnels and water plants against earthquakes. The deal was bought by Merrill Lynch & Co. for resale to investors.

“Good bonds have been hard to buy,” said David Thompson, who manages about $560 million as director of fixed income at Hale & Dorr Capital Management in Boston. “This week should be a good test because you finally have a calendar of some good names.”