Courtesy of Mish.
On Wednesday, I posted a chart of US Treasury Yields asking the question Yield Curve: Where To From Here? Extreme Complacency in Face of Bernanke Shift.
Today’s focus is on municipal bonds, but first let’s take a look at a chart from the above link.
Treasury Yield Curve
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Certainly Bernanke is not hiking rates any time soon. However, that does not preclude upward pressure on long-term rates.
And if there is sustained upward pressure on interest rates (see the above link for why that may be the case), treasuries, corporates, and municipal bonds will all likely suffer.
With that thought in mind, please consider the following chart from Bloomberg on municipal bond yields.
US Municipal Bond Yields
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