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Municipal Market Data (MMD) Curve

Trading Term

The Municipal Market Data (MMD) Curve is a benchmark yield curve that represents the yields of high-grade (AAA-rated) municipal bonds across various maturities. Published by Thomson Reuters, it serves as a standard reference for pricing and evaluating municipal securities.

The MMD Curve provides investors and issuers with a reliable measure of prevailing interest rates in the municipal bond market. It helps in assessing the relative value of municipal bonds and in making informed investment decisions.

For instance, if a new municipal bond is being issued, its yield can be compared to the MMD Curve to determine if it’s offering a competitive rate. Similarly, investors can use the curve to assess whether existing bonds are trading at fair values.

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