Alert April 29, 2011

Bond Market Snapshot

Trading in the municipal securities market remained strong in April 2011, despite Standard & Poor’s announcement of a “negative” outlook for U.S. Treasuries.

The yield on the 10-year U.S. Treasury note continued to outpace the 10-year municipal bond – 3.33% versus 3.05% – while the yield on 30-year municipal bonds increased slightly to 4.78%, but remained higher than the yield on 30-year Treasuries, which dropped slightly to 4.41%.

Source: Bloomberg (www.bloomberg.com)