Municipal Market Performance

Recently, amid the potential delay in rate cuts until later in 2024, municipal yields have risen to a five-month high, with muni paper showing better performance compared to taxable fixed income. Despite a 1.1% decrease in munis since mid-March, they have fared better than US Treasury securities and corporate debt. The increase in muni yields has allowed investors to lock in attractive yields, especially at the longer end of the curve, hinting at a probable shift towards inflows in muni funds.