The yield on AAA-rated municipal bonds dropped slightly during the last month from 4.71% to 4.69% on 30-year bonds, but stayed level for 10-year bonds at 3.21%. During the same period, the yield on Treasuries rose from 4.08% to 4.53% on 30-year bonds and from 3.19% to 3.67% on 10-year notes, bringing the 10-year municipal-treasury yield ratio under 100% for the first time this year.
Some indicators relevant to the bond market improved slightly during the last couple of months. From April to May 2009, the consumer price index increased by 0.3% and existing home sales increased by 2.4%. Housing starts continued to slide, however, decreasing by 12.8% in April. Here are the official numbers:
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)