In September 2011, yields on both municipal bonds and Treasuries continued to drop to record lows. 10-year munis dropped from 2.20% to 1.99%, falling as low as 1.71% following the Fed’s announcement of its “Twist” policy (see “The Fed Tries a Twist” in this issue). Yields on 10-year Treasury notes also dropped from 2.19 to 1.90%. Yields on 30-year securities dropped from 3.85% to 3.51% for municipal bonds and from 3.60% to 2.98% for Treasuries.
Source: Bloomberg (www.bloomberg.com)