The Muni Proposition Has Increased

The municipal bond market has experienced notable shifts recently, with tariff-related headlines contributing to increased volatility. Muni-to-Treasury ratios have cheapened, and municipal rates have moved higher. Selling pressures remain elevated, as reflected in near-record activity on “bid wanted” lists. Additionally, investment-grade and high-yield municipal bond ETFs are trading at growing discounts, underscoring the challenging market dynamic.

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