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Municipal Bonds

Research & Resources – Weekly Market Commentary

The Muni Yield Curve Steepens as Shorter Maturity Rates Continue to Decline, Long End Languishes.

November 20, 2009

  • Yields on high-grade munis from 1 through 15 years have continued to plummet, as investors continue to flee from cash yielding practically zero.
  • As a consequence bonds in this maturity range have retraced the erosion that had occurred during October, and then some.
  • Meanwhile however, yields on the back end of the curve have remained stuck in a tight trading range, in part, we suspect, as a result of consistently much lower flows into long-term muni funds.
  • For more, please read the full report below.
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Read the Full Report (PDF)

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