Muni bond Thursday update: 10-year yield increases
A look at the AP Municipal Bond Index for Thursday, Oct. 26:
BIGGEST MOVER: 30-year bonds. Yield rose 9 basis points over the last week to 2.90 percent.
TWO-YEAR: Yield increased 2 basis points to 1.15 percent. The two-year/10-year spread is 117 basis points, compared with 118 basis points a week ago. The two-year/30-year spread is 175 basis points, up from 173 basis points a week ago.
10-YEAR: Yield increased 2 basis points to 2.32 percent, compared with 2.46 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 Oct. 19. The 10-year/30-year spread for municipal bonds is 58 basis points.
30-YEAR: Yield increased by 2 basis points to 2.90 percent, compared with 2.96 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/