‘That is Insane’: Muni Yields at the Lowest Since Elvis Was King

  • The bond market’s oldest yield index hits lowest since 1956
  • Steady influx of cash into market is keeping a rally going

 Photographer: Daniel Acker/Bloomberg

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The last time municipal-bond yields were this low Dwight D. Eisenhower was the president, Elvis Presley released his second studio album and Grace Kelly married Monaco’s Prince Rainier III.

The Bond Buyer’s 20-year index of general-obligation bonds reset at 2.56% this week, the lowest since June 1956, according to Bloomberg’s records. And for some context, that year some $5.4 billion of new long-term bonds were sold, a sum that’s now considered a somewhat slow week.