With potential rate cuts on the horizon, long-term municipal bonds are emerging as an attractive option due to their higher yields, tax benefits, and potential for price appreciation.
The Case for Long-Term Munis: Positioning for Rate Cuts
The Federal Funds rate has held steady at 5.33% for over a year, but the Federal Reserve (Fed) is now signaling that this period may be coming to an end. With potential rate cuts on the horizon in September, long-term municipal bonds are becoming more attractive. This blog will explore why now could be the ideal time to consider reallocating into long-term munis.
VanEck
by Drew Anderson
Product Analyst
September 13, 2024