Municipal bonds extended their slump on Tuesday, following the market’s worst daily slide in three decades, as a wave of tariff-induced selling pressure continued.
A benchmark index of municipal bonds dropped 2.85% on Monday, the biggest daily decline since at least 1994, according to data compiled by Bloomberg. The historic rout caused several deals to be postponed and wiped out total gains for this year. The pain continued on Tuesday with yields increasing as much as 10 basis points as of 11:00 a.m. New York time.
“The whole market moved from being buyers to being sellers in a very short period of time with nobody willing to take the other side of the trade,” said Christopher Brigati, chief investment officer at SWBC.
Bloomberg Markets
By Aashna Shah, Shruti Singh, and Amanda Albright
April 8, 2025