Key Themes

  • The Municipal Index returned -0.09% in the first quarter.
  • Yields increased across the municipal curve, with short-term yields rising more 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 ratios.
  • Stronger-than-expected economic data and healthy fundamentals for municipalities support current credit spread levels and may warrant additional spread tightening.
  • On an absolute basis, municipal yields offer a compelling option for tax-sensitive investors.


For an in-depth look
Municipal Market Quarterly Review