![](../images/pixel.gif)
Long Term Perspective
![](interestrates/chart_9.gif)
Yields on municipal bonds are lower than on Treasury bonds because the interest earned is exempt from federal income tax. The spread is once again narrowing between these two series. It reflects the decreasing supply of Treasuries rather than a worsening of credit quality among municipal bonds.
Short Term Perspective
![](interestrates/chart_10.gif)
Municipal bond yields have remained stable these past several months, although yields dipped a bit in November.
![](../images/graypixel2.gif)
![](../images/pixel.gif)
2-year Treasury Yield & Spread to Fed Funds
30-year Treasury Yield & Spread 30-year less 2-year
![](../images/pixel.gif)
Yield Spread: AAA Corporate vs. 30-year Treasury
Yield Spread: Baa Corporate vs. 30-year Treasury
![](../images/pixel.gif)
Yield Spread: Bond Buyer vs. 30-year Treasury
© Econoday, 2000. All Rights Reserved.
|