Muni bond Wednesday update: 10-year yield rises

Markets Associated Press

A look at the AP Municipal Bond Index for Wednesday, Oct. 25:

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BIGGEST MOVER: 30-year bonds. Yield increased 6 basis points over the last week to 2.88 percent.

TWO-YEAR: Yield increased 1 basis point to 1.13 percent. The two-year/10-year spread is 116 basis points, down from 120 basis points a week ago. The two-year/30-year spread is 175 basis points, compared with 175 basis points a week ago.

10-YEAR: Yield rose 1 basis point to 2.29 percent, compared with 2.44 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 6 basis points on Oct. 18. The 10-year/30-year spread for municipal bonds is 59 basis points.

30-YEAR: Yield climbed by 2 basis points to 2.88 percent, compared with 2.95 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/