Despite policy uncertainty, municipal bonds continue to offer compelling yields and experience strong investor demand, making them an attractive tax-advantaged income option in today’s market.
Back in March, we wrote that the tax-exemption status of municipal bonds faced growing uncertainty as policymakers weighed major tax changes. While risks loomed, the case for munis remained grounded in one thing: compelling yields.
As of early May, the theme is unchanged—but the backdrop has evolved.
vaneck.com
by Jim Colby
Senior Municipal Strategist
May 14, 2025