States like California, Utah and Georgia saved money for taxpayers by selling AAA-rated bonds in the first quarter through private negotiations with banks, even though more than a dozen studies show such transactions may increase costs.

States with relatively high debt rating pursued negotiated sales rather than traditional competive sales because the markets were anything but normal.

California, which negotiated the sale of $6.5 billion in bonds last month, paid higher yields than in the past. Yet the offering found enough demand for officials to increase it by 64 percent from a planned $4 billion.

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