Alert November 24, 2009

Bond Market Indicators

The yield on AAA-rated municipal bonds increased slightly in November 2009 to 4.49% for 30-year bonds and 3.33% for 10-year bonds. During the same period, the yield on Treasuries dropped slightly to 4.27% on 30-year bonds and 3.33% on 10-year notes, bringing the 10-year muni-treasury yield ratio back to 100%.

 

Source: Bloomberg (www.bloomberg.com)

Some indicators relevant to the bond market improved slightly in September 2009. Existing home sales increased by 9.4% over August figures and are 9.2% higher than in September 2008. New home sales fell slightly, but housing starts increased by 0.5% in September as compared to a month earlier. Here are the official numbers:

 

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)