Muni bond Friday update: 10-year yield decreases

Markets Associated Press

A look at the AP Municipal Bond Index for Friday, Dec. 1:

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BIGGEST MOVER: Four-year bonds. Yield climbed 12 basis points over the last week to 1.70 percent.

TWO-YEAR: Yield dropped 2 basis points to 1.49 percent. The two-year/10-year spread is 87 basis points, down from 92 basis points a week ago. The two-year/30-year spread is 137 basis points, down from 143 basis points a week ago.

10-YEAR: Yield fell 7 basis points to 2.35 percent, compared with 2.37 percent for a 10-year Treasury. The gap between 10-year municipal bonds and Treasurys has been widening over the last week. It was 1 basis point on Nov. 24. The 10-year/30-year spread for municipal bonds is 50 basis points.

30-YEAR: Yield dropped by 6 basis points to 2.85 percent, compared with 2.76 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/