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March 25 – April 1, 2011 Municipal Bond and Mutual Funds News – More Pension Woes

municipal bonds

This week (March 25, 2011 – April 1, 2011) saw more of news about Japan’s disaster. More examples of municipality and state excesses were highlighted. 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 fell slightly. Longer duration mutual funds moved up more than shorter duration funds. The Weeks municipal bond news included:

  • Another problem that is emerging is the fact that public employees are retiring at a rapid pace, fearing that they will lose benefits if they stay longer. Expertise is being lost although your workers are lower paid and get less generous retirement benefits. When you can retire and receive the majority of your salary in retirement, why work? (WSJ)
  • San Francisco needs to issue $150 million in bonds to fill potholes. This is pretty sad that basic services require extra money. We would avoid bonds like this like the plague. (SFGate)

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

Vanguard Tax-exempt Money Market fund (VMSXX) is yielding 0.12%, 0.0% 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 0.8%.

Vanguard Limited Term Tax-Exempt Fund (VMLTX) 0.0% for the week.
Month to date: +0.0%. February 2011 +0.45%. Current Yield 1.41%.

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) +0.0% for the week. Month to date: +0%. February 2011 +1.72%. Current Yield 3.47%.

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 1.77%.

Fidelity California Intermediate term municipal bond fund (FCSTX) +0.0% for the week.
Month to date: +0.0%. February 2011 +0.48%. Current Yield 1.79%.

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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