Takeaways by Bloomberg AI
- Pressure is building in the US municipal bond market, with state and local debt selling off and benchmark yields climbing as much as seven basis points.
- The asset class is now poised for its worst month of performance in a year, driven by concerns about inflation due to the war with Iran.
- Despite the selloff, some investors see a “nice entry point” for buyers, as the surge in yields has caused state and local debt to cheapen from pricey valuations seen earlier this year.
Bloomberg Markets
By Amanda Albright and Elizabeth Rembert
March 20, 2026