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).

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RELATED FAQS
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    Learn more about municipal bonds, including the various types of bonds issued and the purposes of municipal bond funds, such ... Read Answer >>
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    Discover information about trading municipal bonds, specifically the various tax implications municipal bonds have at state ... Read Answer >>
  3. What are the maturity terms for Treasury bonds?

    Learn how treasury bonds pay interest, when they reach maturity and the differences between terms for treasury bonds and ... Read Answer >>
  4. Why are treasury bond yields important to investors of other securities?

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  5. How do the returns on municipal bonds compare to those of other bonds?

    Learn how tax-free municipal bonds may provide better returns than other types of bonds, and understand the risks of municipal ... Read Answer >>
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