Financial FitnessGeneral Information

What’s up with Municipal Bonds and Treasury Bonds?

By February 6, 2020 No Comments

Last week I talked about the drastic increase in market capitalization of US stocks that as of September 30, 2019 the total market capitalization for the US stock market was now over $32 trillion which was an increase from $7.6 trillion back in 2009.

According to the Securities Industry and Financial Markets Association, at the end of 2009, the total US municipal bonds market measured by the total par value of outstanding bonds was $3.8 trillion and through June of 2019, the municipal bond market was flat with still $3.8 trillion in bonds outstanding.  In other words, the number of bonds outstanding is the same today as it was 10 years ago.

During the same 10-year time period, the number of outstanding bonds for the US treasury market has more than doubled growing from $7.3 trillion in 2009 to $15.9 trillion in June of 2019.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly. 

Bonds are subject to market and interest rate risk if sold prior to maturity.  Bond values will decline as interest rates rise and bonds are subject to availability and change in price.