Bond Buyer 11

DEFINITION of 'Bond Buyer 11'

An average yield on a particular day of 11 selected general obligation municipal bonds with an average 'AA' rating, maturing in 20 years. It is comprised of 11 of the 20 bonds in the Bond Buyer 20. The Bond Buyer 11 is published by The Bond Buyer and used as a benchmark in tracking municipal bond yields.

Also referred to as the "11 Bond Index".

BREAKING DOWN 'Bond Buyer 11'

The average rating of the 11 bonds that make up the index are grade 'Aa2' (Moody's rating) or grade 'AA' (S&P 500 rating). The Bond Buyer 11 index is simply a theoretical and estimated average of bond yields.

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RELATED FAQS
  1. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  2. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  3. Who or what is backing municipal bonds?

    Municipal bonds are backed by dedicated taxes or revenue sources related to specific projects, or by the full faith and credit ... Read Full Answer >>
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    Stability is relative in the municipal bond market. Municipal bonds tend to be safer than many other types of investments, ... Read Full Answer >>
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    Funds generated from the sale of municipal bonds may go to provide for unspecified, general government financial needs, or ... Read Full Answer >>
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