Refunding volume increased 22.8% to $47.8 billion in the first six months of 2010, despite the year-long decline in long-term non-stimulus program bond issuance, reflecting a shift in the yield curve and improved market conditions. Refunding volume was $38.9 billion in the same period of 2009.

Yield levels experienced their most precipitous drop in the 7-to-12 year portion in the first half of this year as they declined anywhere from 10 to 22 basis points, according to the Municipal Market Data’s triple-A scale. The long end of the curve also rallied, with yields dropping from 8 to 13 basis points between 25 and 30 years.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.