Rates Over Time - Interest Rate Trends

The following graphs set forth information relating to municipal bond yields (interest rates) trends. Four of the graphs are based on "The Bond Buyer 20-Bond GO Index".  The 20-Bond GO Index is based on an average of certain general obligation municipal bonds maturing in 20 years and having an average rating equivalent of Moody's Aa2 and Standard & Poor's AA. The five graphs below are as follows (i)  yields for the past ten years, (ii) weekly yields over a twelve month period ending July 1, 2009, (iii) yields since 1970, (iv) a comparison of the 20-Bond GO Index to 20-year US Treasury Bonds, and (v) the Municipal Market Data index for rating grades "AA", "A" and "BAA" maturing in the 20th year.  The fifth graph highlights the credit spread crisis that emerged during 2008.  Prior to 2008 the spreads between rating grades were generally less than 30 basis points ( .30%). Spreads between rating grades, for bond rated AA and lower, are now over 65 basis points ( .65%).