Municipal bonds are looking attractive as they slowly start to recover from the tariff-fueled rout that sent yields soaring earlier this month.
Benchmark yields for state and local US government debt are still elevated compared to where they stood before the historic selloff. For example, the 30-year yield is at 4.5%, about 40 basis points higher than the average yield this year, according to data compiled by Bloomberg.
The current cheapness is a shift from the past several years when muni bonds had stayed relatively expensive, said Troy Willis, co-head and senior portfolio manager of Easterly ROC Municipals.
Bloomberg Markets
By Amanda Albright
April 21, 2025