Muni bond Tuesday update: 10-year yield rises

Markets Associated Press

A look at the AP Municipal Bond Index for Tuesday, Oct. 3:

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BIGGEST MOVER: Two-year bonds. Yield increased 9 basis points over the last week to 1.09 percent.

TWO-YEAR: Yield dropped less than a basis point to 1.09 percent. The two-year/10-year spread is 126 basis points, down from 128 basis points a week ago. The two-year/30-year spread is 181 basis points, down from 185 basis points a week ago.

10-YEAR: Yield climbed 1 basis point to 2.34 percent, compared with 2.33 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been narrowing over the last week. It was 4 basis points on Sept. 26. The 10-year/30-year spread for municipal bonds is 55 basis points.

30-YEAR: Yield climbed by less than a basis point to 2.89 percent, compared with 2.87 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