Muni bond Monday update: 10-year yield falls
A look at the AP Municipal Bond Index for Monday, Oct. 30:
BIGGEST MOVER: Three-year bonds. Yield increased 7 basis points over the last week to 1.27 percent.
TWO-YEAR: Yield fell 1 basis point to 1.15 percent. The two-year/10-year spread is 118 basis points, compared with 119 basis points a week ago. The two-year/30-year spread is 174 basis points, down from 176 basis points a week ago.
10-YEAR: Yield decreased 1 basis point to 2.33 percent, compared with 2.37 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been narrowing over the last week. It was 10 basis points on Oct. 23. The 10-year/30-year spread for municipal bonds is 56 basis points.
30-YEAR: Yield dropped by 2 basis points to 2.89 percent, compared with 2.88 percent for a 30-year Treasury.
AP created this story using data from Municipal Bond Information Services and the U.S. Department of the Treasury. Learn more about the AP Municipal Bond Index at http://mbis.com/