| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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`Avalanche' of Investor Sales Pushes Yields to 16-Month High: Muni Credit |
Bloomberg - Dec. 15, 2010 - By Brendan A. McGrail
Yields on top-rated tax-exempt securities due in 30 years climbed twice as fast as those on U.S. Treasuries, reaching the highest level in almost 16 months.
The prospect that tax-free municipal issuance will surge if the Build America Bonds program isn’t renewed after Dec. 31 drove 30-year tax-exempt rates up 20 basis points, or 0.2 percentage point, to 4.84 percent, the highest since Aug. 17, 2009, according to a Bloomberg Valuation index.
Bondholders sought buyers for $1.4 billion in debt yesterday, the most since June 15, 2006, according to a Bloomberg bids-wanted index.
“Nobody’s bidding,” Tony Shields, a principal in the public-finance department at Williams Capital Group LP in New York, said in an e-mail. There’s “an avalanche of bid-wanteds, and there is just not enough liquidity to accommodate this much sell-side pressure.”
Treasury prices plunged yesterday, pushing the 30-year bond yield to a seven-month high, as Federal Reserve policy makers said the U.S. recovery is continuing and maintained a $600 billion program of debt purchases. The 30-year bond yield increased 12 basis points to 4.53 percent yesterday before prices rallied today, pushing the yield down to 4.5 percent in early New York trading, according to BGCantor Market Data.
Municipal-bond yields jumped at almost every maturity, except rates on 1- and 2-year debt, which fell 4 basis points and 2 basis points, respectively, BVAL benchmark indexes show. Tax-exempts coming due in 25 years rose for a sixth straight day, climbing 14 basis points to 4.72 percent yesterday, the highest since Aug. 12, 2009.
New York
Amid the rising yields, New York City cut today’s tax- exempt offering by two-thirds to $100 million citing “volatile market conditions,” the Office of Management and Budget said in a press release yesterday.
Long-term rates may increase more than 50 basis points next year if the Build America program isn’t renewed, according to a research note by analysts led by John Hallacy, manager of municipal research at Bank of America Merrill Lynch in New York.
The subsidy was left out of an agreement President Barack Obama struck with Republicans, some of whom have been critical of the program. While in the minority, the party has enough power to stall the legislation. U.S. Senator Ron Wyden, a Democrat from Oregon, who previously led an unsuccessful bid to extend the program, offered an amendment this week to include it in the tax bill.
For the complete article.
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