Texas had its best short-term note sale in the state’s history this week, according to Texas Comptroller Susan Combs.

The sale of $5.5 billion in tax and revenue anticipation notes on Aug. 25 achieved an interest rate of 0.48 percent — the lowest rate the state has ever received on its annual sale of short-term notes, Combs said.

“Buyers bid more than $28 billion to obtain a portion of the $5.5 billion in notes Texas offered for sale,” she said. “That is more than five times the amount available for purchase. The high demand for Texas’ high-quality notes drove the interest rate down to its historic low.”

The state plans to use proceeds from the sale for distribution to public schools early in the upcoming fiscal year and to manage its cash flow between the start of the fiscal year and the arrival of tax revenues later in the year.

Notes sold on Aug. 25 will be repaid Aug. 31, 2010.