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April 1 – April 8, 2011 Municipal Bond and Mutual Funds News

municipal bonds

This week (April 1, 2011 – April 8, 2011) saw more of news about Japan’s disaster and the Middle East crisis. Tax-free Mutual funds saw continued outflows. The mutual funds we track were unchanged or up slightly this week and for the month, fund yields mostly fell slightly. Longer duration mutual funds moved up more than shorter duration funds. The Weeks municipal bond news included:

  • San Francisco owes employees and retirees $4.3 billion in promised healthcare benefits and has saved almost nothing to pay the tab! They have a proposed proposition for the ballot that makes workers pay more of their pension and healthcare benefits. (SFgate)
  • More public pension plans are assuming annual rate of investment return of 8% or higher. Not only are public employees going to get hit by pension cuts, there are going to be surprised by lower returns. The pension plans have avoided lowering assumed rate of investment return to keep contribution payments at the same level. Another crisis waiting to blow up. (WSJ)

Vanguard Municipal Bond Mutual Fund Weekly Price Movement (Detailed stats)

Vanguard Tax-exempt Money Market fund (VMSXX) is yielding 0.11%, -0.01% for the week.

Vanguard Short Term Tax-Exempt Fund (VWSTX) +0.0% for the week.
Month to date: +0.0%. February 2011 +0.16%. Current Yield 0.77%.

Vanguard Limited Term Tax-Exempt Fund (VMLTX) 0.0% for the week.
Month to date: +0.0%. February 2011 +0.45%. Current Yield 1.38%.

Vanguard Intermediate Term Tax-Exempt Fund (VWIUX) +0.0% for the week. Month to date: +0%. February 2011 +1.52%. Current Yield 3.28%.

Vanguard California Intermediate term municipal bond fund (VCAIX) -0.09% for the week. Month to date: -0.09%. February 2011 +1.72%. Current Yield 3.46%.

Fidelity Municipal Bond Mutual Fund Weekly Price Movement (Detailed stats)

Fidelity Short-Intermediate Muni Income Bond Fund (FSTFX) +0.0% for the week.
Month to date: +0.0%. February 2011 +0.30%. Current Yield 1.73%.

Fidelity California Intermediate term municipal bond fund (FCSTX) +0.0% for the week.
Month to date: +0.0%. February 2011 +0.48%. Current Yield 1.69%.

See how the Fidelity intermediate term municipal bond fund (FCSTX) and Vanguard California intermediate term municipal bond fund (VCAIX) performed this week on this graph:

See how the municipal bond mutual funds we listed above performed this year on this graph:

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