Municipals-Over-Bonds Spread - MOB


DEFINITION of 'Municipals-Over-Bonds Spread - MOB'

The difference in yields between a municipal bond and a Treasury bond with the same time to maturity. The MOB is sometimes used for determining tax strategies.

BREAKING DOWN 'Municipals-Over-Bonds Spread - MOB'

Most MOB spread calculations actually use the yield implicit in futures prices for munis and Treasuries listed on the Chicago Board of Trade. The MOB spread is essentially a comparison of the interest rate spread between federal government debt (Treasuries) and state/municipal debt (municipal bonds).

  1. Chicago Board Of Trade - CBOT

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  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  6. Sub-Sovereign Obligation - SSO

    A form of debt obligation issued by hierarchical tiers below ...
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