In August, yields on both Treasuries and municipal securities dropped precipitously, despite the SEC’s rating downgrade of U.S. sovereign debt. Yields on 10-year Treasury notes dropped from 2.95% to 2.19%, dipping as low as 2.07% during the month. Yields on 30-year Treasuries fell from 4.26% to 3.60%. Yields on municipal bonds fell from 2.74% to 2.20% on 10-year bonds and from 4.37% to 3.85% on 30-year bonds.
Source: Bloomberg (www.bloomberg.com)