Muni bond Tuesday update: 10-year yield decreases

Markets Associated Press

A look at the AP Municipal Bond Index for Tuesday, Aug. 29:

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BIGGEST MOVER: One-year bonds. Yield fell 6 basis points over the last week to 0.91 percent.

TWO-YEAR: Yield decreased 4 basis points to 0.90 percent. The two-year/10-year spread is 133 basis points, compared with 132 basis points a week ago. The two-year/30-year spread is 194 basis points, up from 192 basis points a week ago.

10-YEAR: Yield dropped 3 basis points to 2.22 percent, compared with 2.13 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 4 basis points on Aug. 22. The 10-year/30-year spread for municipal bonds is 61 basis points.

30-YEAR: Yield dropped by 3 basis points to 2.84 percent, compared with 2.74 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