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Municipal Bond Mutual Fund News

December 13-17, 2010 Municipal bond Mutual Fund Drop

municipal bonds

This week’s (December 13-17, 2010) saw another week of falling prices in Municipal bond Mutual Funds. This time the blame was:

  • Obama renews Bush tax extensions to extend lower income tax rates, causing National debt to rise
  • Better economic news meaning that the economy is starting to recover
  • End of Build America Bond Program causing many more muni bond issues in 2011 possibly lowering prices

Hopefully this downdraft is now over, as municipal bond mutual funds started to rise on Thursday and continued into Friday. Note that yields are starting to rise on these funds.

Morningstar had a good article today on rising interest rates and bond mutual funds.

Fidelity intermediate term municipal bond fund (FCSTX) -0.47% for the week.
Month to date: -0.93%. November -0.14%. Current Yield 1.58%.

Vanguard California intermediate term municipal bond fund (VCAIX) -1.2% for the week.
Month to date: -2.29% November -2.3%. Current Yield 3.32%.

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 Fidelity intermediate term municipal bond fund (FCSTX) and Vanguard California intermediate term municipal bond fund (VCAIX) performed this month on this graph:

Municipal Bond

December 6-10, 2010 Municipal bond Mutual Fund Drop

municipal bonds

This week’s (December 6-10, 2010) saw another week of falling prices in Municipal bond Mutual Funds. This time the blame was on the new Obama tax proposal to extend lower income tax rates, better economic news, and Treasury Yields rising.

Fidelity intermediate term municipal bond fund (FCSTX) -0.37% for the week.
Month to date: -0.46%. November -0.14%. Current Yield 1.47%.

Vanguard California intermediate term municipal bond fund (VCAIX) -1% for the week.
Month to date: -1.09%. November -2.3%. Current Yield 3.17%.

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 Fidelity intermediate term municipal bond fund (FCSTX) and Vanguard California intermediate term municipal bond fund (VCAIX) performed this month on this graph: