Muni bond Monday update: 10-year yield increases

Markets Associated Press

A look at the AP Municipal Bond Index for Monday, Oct. 23:

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BIGGEST MOVER: One-year bonds. Yield climbed 5 basis points over the last week to 1.02 percent.

TWO-YEAR: Yield dropped less than a basis point to 1.09 percent. The two-year/10-year spread is 119 basis points, down from 121 basis points a week ago. The two-year/30-year spread is 176 basis points, down from 177 basis points a week ago.

10-YEAR: Yield increased 1 basis point to 2.28 percent, compared with 2.38 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 2 basis points on Oct. 16. The 10-year/30-year spread for municipal bonds is 57 basis points.

30-YEAR: Yield rose by 2 basis points to 2.85 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/