LOS ANGELES - The worst may be over for California, but the state's general obligation bonds could be stuck near single-A trading levels for months to come, according to J.P. Morgan Securities Inc.

A stagnant economy and flaws in the state's fiscal 1994 budget get the blame. "We see little potential for near-term improvement in the state's economic or fiscal performance," the firm said in its latest "Municipal market monitor."

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