(Replaces “of” with “over” in the last paragraph)
NEW YORK, May 24 (Reuters) - The premium Connecticut pays to borrow money in the municipal bond market grew during a sale of the state’s debt on Tuesday, a sign that investors are demanding more to hold the debt following recent downgrades from two ratings agencies.
The state sold $512.9 million of general obligation debt, with the sale pricing for institutional investors on Tuesday. The preliminary yield of the 10-year general obligation debt was 2.33 percent, 70 basis points over the AAA benchmark, according to data complied by Thomson Reuters. (Reporting by Edward Krudy; Editing by Dan Grebler)