Muni bond Tuesday update: 10-year yield falls

Markets Associated Press

A look at the AP Municipal Bond Index for Tuesday, Sept. 5:

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BIGGEST MOVER: One-year bonds. Yield fell 3 basis points over the last week to 0.88 percent.

TWO-YEAR: Yield decreased 1 basis point to 0.92 percent. The two-year/10-year spread is 129 basis points, down from 133 basis points a week ago. The two-year/30-year spread is 189 basis points, down from 194 basis points a week ago.

10-YEAR: Yield decreased 2 basis points to 2.21 percent, compared with 2.07 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 10 basis points on Aug. 29. The 10-year/30-year spread for municipal bonds is 60 basis points.

30-YEAR: Yield decreased by 1 basis point to 2.81 percent, compared with 2.69 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