Muni Yields Drop to 1967 Low as Obama Tax Plan Stokes Demand
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U.S. municipal-bond yields dropped to the lowest in more than four decades as President Barack Obama’s re-election fueled speculation that income-tax rates will increase, boosting the appeal of tax-free debt.
The interest rate on 20-year general-obligation bonds fell 0.12 percentage point to 3.55 percent in the week ended Nov. 8, according to a Bond Buyer index. That beats this year’s previous low of 3.6 percent and is the lowest since April 1967, when Lyndon B. Johnson was president.