Alert February 17, 2009

Bond Market Indicators

The following tables highlight certain economic indicators that may provide insight into the municipal bond market

Source: Bloomberg www.bloomberg.com

As of 01/15/2009

As of 02/15/2009

Yield on 10-Year Treasury Notes:

2.18%

2.80%

Yield on 30-Year Treasury Bonds:

2.86%

3.52%

Yield on 10-Year Municipal Bonds:

3.54%

3.18%

Yield on 30-Year Municipal Bonds:

4.80%

4.80%

Gross Domestic Product (4Q versus 3Q, 2008):

–3.8%

Consumer Price Index (12/08 versus 11/08):

–0.7%

Existing Home Sales (12/08 versus 11/08):

6.5%

New Home Sales (12/08 versus 11/08):

–14.7%

Housing Starts (12/08 versus 11/08):

–15.5%

 

Sources:

Gross Domestic Product:  U.S. Bureau of Economic Analysis (www.economicindicators.gov)
Consumer Price Index: U.S. Bureau of Labor Statistics (www.bls.gov)
Existing Home Sales, New Homes Sales, and Housing Starts:National Association of Realtors (www.realtor.org)
Bond and Note Yields: Bloomberg (www.bloomberg.com)