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Business Definition for: mob spread
mob spread

difference in yield between a tax-free municipal bond and a Treasury bond with the same maturity. Term is an acronym for municipals-over-bonds spread , which will always exist because municipals involve different degrees of risk while Treasuries are riskfree as to principal. The spread between a "muni" of a given rating and a Treasury with the same maturity has significance in tax decisions and in transactions involving financial futures contracts.

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