Key Themes

  • The Municipal Index returned 0.26% in the second quarter.
  • Municipal yields increased across most maturities, with short and intermediate yields rising faster than long term yields, resulting in a flatter yield curve.
  • Municipal valuations cheapened versus USTs on a maturity-matched basis, reflected in higher Municipal-to-Treasury (MT) ratios.
  • From a fundamental perspective, municipalities remain well positioned given the increase in reserves over the past four years.
  • Municipal yields offer a compelling option for tax-sensitive investors.


For an in-depth look
Municipal Market Quarterly Review