Alert April 10, 2009

Bond Market Indicators

The yield on AAA-rated 30-year municipal bonds dropped slightly during the last 30 days from 3.76% to 3.68%, while the yield on 30-year treasury bonds remained relatively steady at 4.91%. The following table compares the yields on both of these benchmark securities since the beginning of 2009.

Source:
Bloomberg (www.bloomberg.com)

Unemployment continues to worsen, reaching 8.5% nationally. However, certain other indicators relevant to the bond market showed signs of life in February 2009, including housing starts, which registered a 22.2% jump.

 

Sources:
Unemployment Rate and 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)