In the week ended Feb. 22, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index rose one basis point to 4.01% from 4.00% the previous week. The BB40 Index is based on the price of 40 long-term bonds.

The Bond Buyer's 20-Bond GO Index of 20-year general obligation yields rose two basis points to 3.86% from 3.84% the previous week.

The 11-Bond GO Index of higher-grade 11-year GOs increased two basis points to 3.36% from 3.34% in the prior week.

The Bond Buyer's Revenue Bond Index gained two basis points to 4.35% from 4.33% last week.

The yield on the U.S. Treasury's 10-year note rose to 2.93% from 2.91% the previous week, while the yield on the Treasury's 30-year increased to 3.21% from 3.15% in the prior week.

The 20-Bond Index consists of 20 general obligation bonds that mature in 20 years. The average rating of the 20 bonds is roughly equivalent to Moody's Investors Service's Aa2 rating and Standard & Poor's Corp.'s AA.

The 11-Bond Index uses a select group of 11 bonds in the 20-Bond Index. The average rating of the 11 bonds is roughly equivalent to Moody's Aa1 and S&P's AA-plus.

The Revenue Bond Index consists of 25 various revenue bonds that mature in 30 years. The average rating is roughly equivalent to Moody's A1 and S&P's A-plus.

The indexes represent theoretical yields rather than actual price or yield quotations. Municipal bond traders are asked to estimate what a current-coupon bond for each issuer in the indexes would yield if the bond was sold at par value. The indexes are simple averages of the average estimated yields of the bonds.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.