Municipal Bond Market Insight - Setback or Setup

What were the key takeaways from last month’s numbers? Our muni specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for muni investors.

Key takeaways from the latest edition:

 Municipal bonds remain in positive total return territory year-to-date, unlike Treasurys and corporates after July losses pressured fixed income across the board.

Record supply has not displaced resilient demand, with muni mutual fund inflows and seasonal reinvestment cash continuing to support the tax-exempt marketplace.

 Intermediate and long municipal yields have again revisited rarefied air, creating a historically attractive entry point for appropriate investors seeking tax-exempt fixed income.

 Fed communication under Chair Kevin Warsh may leave markets more data-dependent and volatile, reinforcing the value of disciplined curve positioning and active tax-aware implementation.