Muni bond Wednesday update: 10-year yield falls

Markets Associated Press

A look at the AP Municipal Bond Index for Wednesday, Aug. 23:

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BIGGEST MOVER: 23-year bonds. Yield decreased 3 basis points over the last week to 2.76 percent.

TWO-YEAR: Yield decreased less than a basis point to 0.93 percent. The two-year/10-year spread is 130 basis points, compared with 131 basis points a week ago. The two-year/30-year spread is 191 basis points, down from 193 basis points a week ago.

10-YEAR: Yield dropped 2 basis points to 2.24 percent, compared with 2.17 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 Aug. 16. The 10-year/30-year spread for municipal bonds is 61 basis points.

30-YEAR: Yield fell by 1 basis point to 2.84 percent, compared with 2.75 percent for a 30-year Treasury.

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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/

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Keywords: Muni Bonds