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<br /> <br /> <br />Trends in Municipal Bond Yields <br /> <br />The upward trend in muni yields, which began in early September, took a breather over the past <br />three weeks (see chart below). Yields shot up a few basis points after the FOMC’s meeting <br />minutes, which essentially said the Fed is ready to move rates higher, but have tempered a bit <br />since then, essentially keeping pace with treasury yields. All in all, municipal bond yields have <br />not changed much in the past few weeks. <br /> <br /> <br /> <br />The 30-day visible supply this week is about $7 billion, down from the $10 billion shown for the <br />past couple of weeks, which helps to push pricing on short-term maturities up (making them <br />more expensive) relative to U.S. Treasuries. That said, supply continues to be lower than 2017, <br />which should help to support municipal bond prices. <br /> <br /> <br />AAA Yields* <br />5 Years 2.15%2.31%2.30%0.15%-0.01% <br />10 Years 2.57%2.72%2.72%0.15%0.00% <br />20 Years 3.05%3.26%3.24%0.19%-0.02% <br />30 Years 3.20%3.40%3.39%0.19%-0.01% <br />Bond Buyer 20 Bond Index**4.06%4.24%4.30%0.24%0.06% <br />Change <br />Since <br />10/5 <br />Trends in Municipal Bond Yields <br />September 14, 2018 to October 26, 2018 <br />Source: <br />* Bloomberg Valuation <br />** The Bond Buyer <br />Average yield on a portfolio of municpal bonds maturing in 20 years, with an average rating of AA/Aa2 <br />September 14, 2018 October 5, 2018 October 26, 2018 <br />Change <br />Since <br />9/14