New York State officials said yesterday they would probably sell $9 billion of tax-exempt bonds over a one-year period as part of the state's plan to purchase the Long Island Lighting Co.

But such a dramatic increase in the state's borrowing in just one year would probably cause yields of other state municipal issues to rise and also force local issuers to pay more on their borrowings, market participants warned yesterday.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.