Tax-Exempt Yields Take Biggest Drop Since November: Muni Credit
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Yields on top-rated tax-exempt municipal bonds due in 30 years declined by the most in almost two months as demand from institutional and so-called crossover buyers overwhelmed the week’s supply even as investors pulled a record $4 billion from muni mutual funds.
Rates on tax-exempts maturing in 2041 have fallen 12 basis points, or 0.12 percentage point, to 4.96 percent this week, heading for the biggest slide since the week ended Nov. 26, according to a Bloomberg Valuation index. Thirty-year Treasury yields fell two basis points to 4.59 percent after touching 4.63 percent yesterday, the highest since April 29. Yields on 15-year top-rated munis fell less than 1 basis point to 4.25 percent, the first decrease in 11 days, BVAL indexes show.