Yields fall as the real cost of debt becomes more expensive. Creditors are paid back in currency that is worth more.
U.S. 30-Year Muni-Bond Yields Fall to Lowest Rate Since 2009
By Michelle Kaske on July 25, 2012
Benchmark 30-year municipal-bond yields fell to their lowest level since at least the start of 2009 as investors sought a haven in tax-exempt debt amid concern that Europe’s debt crisis will persist.
Yields on top-rated tax-exempts due in 2042 sank to 3.015 percent at 10 a.m. in New York, the lowest level since a Bloomberg Valuation index began in January 2009.
Interest rates on federal debt due in 30 years fell to an all-time low of 2.445 percent today amid concern Europe’s debt crisis is spreading to other nations in the region.
To contact the reporter on this story: Michelle Kaske in New York at mkaske@bloomberg.net
To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net