Yield Curves and Benchmarks

While the municipal securities market is composed of unique bond issues, each with its own specific structural characteristics, ratings and yields, market indicators provide sector-specific or broad market information about the general level of municipal interest rates. These indicators include indices, benchmarks and yield curves. 

Municipal securities issuers and investors may use these indicators to assist in the evaluation of a unique bond’s yield or its performance relative to a particular sector or the market as a whole. Indices, yield curves and benchmarks often are used by underwriters as a factor when determining the yield levels at which a new issue of municipal securities will be offered to investors. 

The following educational publications provide more information on yield curves, indices and benchmarks.