Takeaways by Bloomberg AI
- Municipal bonds dropped the most in months as supply starts to pick up and geopolitical concerns hammer the US Treasury market.
- Top-rated state and local government debt yields rose as much as seven basis points on Tuesday, marking the biggest such move for 10- and 30-year bonds since July.
- The selloff presented a chance for portfolio managers and investors with cash in money market funds, with some viewing the pullback as a good opportunity to get quality paper at a wider yield.
Bloomberg Markets
By Elizabeth Rembert and Aashna Shah
January 20, 2026