Muni bond Tuesday update: 10-year yield decreases
A look at the AP Municipal Bond Index for Tuesday, Oct. 17:
BIGGEST MOVER: 30-year bonds. Yield fell 6 basis points over the last week to 2.83 percent.
TWO-YEAR: Yield fell less than a basis point to 1.08 percent. The two-year/10-year spread is 121 basis points, down from 125 basis points a week ago. The two-year/30-year spread is 176 basis points, down from 181 basis points a week ago.
10-YEAR: Yield decreased less than a basis point to 2.28 percent, compared with 2.30 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 2 basis points on Oct. 10. The 10-year/30-year spread for municipal bonds is 55 basis points.
30-YEAR: Yield decreased by 2 basis points to 2.83 percent, compared with 2.80 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/