Takeaways by Bloomberg AI
- The escalating Middle East conflict sent most safe haven assets higher as investors braced for the worst case scenarios, with municipal bonds expected to continue to be a shelter for investors.
- Municipal bonds slipped Monday as geopolitical concerns hammered Treasuries, with top-rated state and local government yields rising as much as five basis points.
- Despite the move, strong buy-side interest has supported performance and kept the overall market tone firm, with munis remaining the best performing fixed income asset class through February.
Bloomberg Markets
By Erin Hudson and Aashna Shah
March 2, 2026