The municipal market is still waiting for the first of what is expected to be several California tobacco settlement securitizations to come to market, but one county that had made strong progress toward pricing a deal has decided to step back from the starting line.

Laura Lockwood, director of debt management for Contra Costa County, said the county last month shelved a $125 million deal that it had been considering because the bonds' yields would have been too high relative to the rates that the county would have earned from an endowment that invested the proceeds in other municipals.

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