Municipal market indicators provide information about the general level of interest rates for municipal securities. These indicators include indices, benchmarks and yield curves. Municipal securities investors often use them to assist in their evaluation of a specific bond’s yield or its performance relative to a particular sector or the market as a whole.
Indices, yield curves and benchmarks are also important to issuers of municipal securities as they are used by underwriters as factors when determining the yield levels at which a new issue of municipal securities will be offered to investors.
Because of their use in the market, indices, benchmarks and yield curves are important components in the fair and efficient operation of the municipal market. To assist the market’s understanding of these tools, the MSRB has developed educational material on indices, benchmarks and yield curves, and also on how a broader index, the London Interbank Offered Rate (LIBOR) is used in the municipal market.
Read the MSRB’s publication on understanding municipal market indices, yield curves and benchmarks.
Read the MSRB’s publication on understanding LIBOR and how it is used in the municipal securities market.