CBOT To List Municipal Bond Contracts At Six Percent

The Chicago Board of Trade announced today that beginning August 9, 1999, it will list the 6 percent Bond Buyer Municipal Bond contract. Currently, the contract is based on an 8 percent contract. The change will take effect with the March, June and September 2000 contracts. The modification will allow the Municipal Bond contract to match recent modifications to the CBOT Treasury complex, and will facilitate MOB (municipals over bonds) spread trading. The change also will provide investors with instruments that better reflect the current cash market. The CBOT's Municipal Bond contract is based on the Bond Buyer Municipal Bond Index, using a 6 percent conversion factor system. The Bond Buyer magazine maintains and publishes the index. For more information, visit the CBOT web site's Municipal Bond section at www.cbot.com/ourproducts/financial/munisix.html