Muni bond Monday update: 10-year yield rises

Markets Associated Press

A look at the AP Municipal Bond Index for Monday, Aug. 28:

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BIGGEST MOVER: One-year bonds. Yield dropped 3 basis points over the last week to 0.95 percent.

TWO-YEAR: Yield fell 1 basis point to 0.94 percent. The two-year/10-year spread is 131 basis points, compared with 131 basis points a week ago. The two-year/30-year spread is 193 basis points, up from 191 basis points a week ago.

10-YEAR: Yield climbed 2 basis points to 2.25 percent, compared with 2.16 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 7 basis points on Aug. 21. The 10-year/30-year spread for municipal bonds is 61 basis points.

30-YEAR: Yield climbed by 3 basis points to 2.86 percent, compared with 2.76 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