The yield on AAA-rated municipal bonds dipped slightly in December 2009 to 4.47% for 30-year bonds and 3.17% for 10-year bonds. During the same period, the yield on Treasuries increased slightly to 4.43% on 30-year bonds and 3.52% on 10-year notes, pushing the 10-year muni-treasury yield ratio back under 100% to 90.1%.
Source: Bloomberg (www.bloomberg.com)
Some indicators relevant to the bond market have improved slightly in late 2009. The Consumer Price Index rose 0.4% in November, and 1.8% during the past 12 months, which is the first positive 12-month change since February 2009. Unemployment dropped from 10.2% to 10.0% in November. Both existing and new home sales increased in October by 10.1% and 6.2%, respectively, and housing starts rose in November by 8.9%. Here are the official numbers: