Muni bond Thursday update: 10-year yield increases

Markets Associated Press

A look at the AP Municipal Bond Index for Thursday, Oct. 5:

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BIGGEST MOVER: Three-year bonds. Yield climbed 4 basis points over the last week to 1.17 percent.

TWO-YEAR: Yield increased 1 basis point to 1.10 percent. The two-year/10-year spread is 124 basis points, compared with 123 basis points a week ago. The two-year/30-year spread is 178 basis points, down from 181 basis points a week ago.

10-YEAR: Yield rose less than a basis point to 2.34 percent, compared with 2.35 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was less than a basis point on Sept. 28. The 10-year/30-year spread for municipal bonds is 54 basis points.

30-YEAR: Yield increased by less than a basis point to 2.88 percent, compared with 2.89 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/