Muni Yields at 23-Month High as Bernanke Unsettles Market
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Yields in the $3.7 trillion municipal-bond market rose to the highest in almost two years, following U.S. Treasuries, amid concern that the Federal Reserve will halt monthly debt purchases by the middle of 2014.
The yield on general-obligation munis maturing in 20 years rose 0.21 percentage point to 4.37 percent this week, the highest since July 28, 2011, according to Bond Buyer Index data. The index has jumped 0.44 percentage point in the past two weeks, the biggest increase since January 2011. Bonds in the index have an average Moody’s Investors Service rating of Aa2, third-highest.