The Bond Buyer’s long-term weekly yield indexes increased this week, reflecting losses in the Treasury market.
The losses were muted, however, due to continued light supply in the primary market.
“It seems as if we’re settling in with a lot more stability than perhaps we had in the early part of January, but it still seems the market is bleeding a little bit lower as a trend,” said Michael Pietronico, chief executive officer at Miller Tabak Asset Management.
“Early in the week, the market was pressured by consecutive days of losses in the Treasury market,” noted Matthew Posner of Municipal Market Advisors. “By Wednesday, however, dealer sponsorship in the competitive market helped to stabilize levels, which led to a relatively lightly changed market for the second half of the week.”
The Bond Buyer 20-bond index of 20-year general obligation yields increased four basis points this week to 5.29%. That is the highest level for the index since Jan. 20, when it was 5.41%.
The 11-bond GO index of higher-grade 20-year GO yields also gained four basis points this week, to 5.04%, which is the highest it has been since Jan. 20, when it was 5.16%.
The revenue bond index, which measures 30-year revenue bond yields, rose four basis points this week as well, to 5.67%. It is now at its highest level since Aug. 6, 2009, when it was 5.68%.
The Bond Buyer one-year note index, which is based on one-year tax-exempt note yields, declined five basis points this week to 0.51% — its lowest level since Nov. 10, 2010, when it was 0.46%.
The yield on the 10-year Treasury note increased 14 basis points this week to 3.70%. That is the highest the yield has been since April 29, 2010, when it was 3.74%.
The yield on the 30-year Treasury bond gained 13 basis points this week to 4.80%, which is the highest it has been since Oct. 11, 2007 — nearly three and a half years ago — when it was 4.87%.
The weekly average yield to maturity on The Bond Buyer’s 40-bond municipal bond index, which is based on 40 long-term municipal bond prices, finished at 5.80%, up six basis points from last week’s 5.74%.