Muni bond Tuesday update: 10-year yield increases
A look at the AP Municipal Bond Index for Tuesday, Nov. 14:
BIGGEST MOVER: One-year bonds. Yield rose 12 basis points over the last week to 1.20 percent.
TWO-YEAR: Yield rose 1 basis point to 1.30 percent. The two-year/10-year spread is 100 basis points, down from 102 basis points a week ago. The two-year/30-year spread is 151 basis points, down from 156 basis points a week ago.
10-YEAR: Yield rose 1 basis point to 2.30 percent, compared with 2.38 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 8 basis points on Nov. 7. The 10-year/30-year spread for municipal bonds is 51 basis points.
30-YEAR: Yield fell by less than a basis point to 2.81 percent, compared with 2.84 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/