Reported 5 months ago
The municipal bond market experienced its worst week since March 2020, with yields on 10-year state and local-government debt rising by 34 basis points to 2.99% as a result of a surge in issuance, totaling over $180 billion in long-term municipal bonds so far in 2024. The increase in supply has been driven by issuers looking to act before the November US presidential election and potential tax policy changes, while some investors are also cautious about the Federal Reserve's actions in response to persistent inflation. However, the rise in municipal bond yields relative to Treasuries could attract investors as cash from maturing debt flows back into the market.
Source: YAHOO