Alert March 20, 2009

Bond Market Indicators

On March 16, 2009, the yield on AAA-rated 30-year municipal bonds and treasury bonds reached their highest levels since the beginning of the year: 4.91% and 3.76%, respectively. The following table compares the yields on both of those benchmark securities since the beginning of 2009.

 

Here are a few more indicators that may provide insight into the municipal bond market.

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

–3.8%

Consumer Price Index (1/09 versus 12/08):

0.4%

Existing Home Sales (1/09 versus 12/08):

– 5.3%

New Home Sales (1/09 versus 12/08):

–10.2%

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)