: The muni yield curve is historically steep, particularly at the 20-year mark, where AAA yields above 4.00% offer a significant "pickup" over 5-year bonds. Key Investment Themes for 2026
: Analysts see "idiosyncratic" value in specific sectors like pre-paid gas bonds , which offer wider spreads than generic high-grade munis, and affordable housing bonds . Risks to Consider Municipal bonds outlook: Poised for the next act? is now a good time to buy municipal bonds
: Demand is high, fueled by nearly $8 trillion in sidelined money market funds expected to rotate into bonds as the Fed continues its easing cycle. : The muni yield curve is historically steep,
: Tax-equivalent yields for investment-grade munis are roughly 6% , and up to 9% for high-yield segments, which compare favorably to other asset classes for those in high tax brackets. : Demand is high, fueled by nearly $8
: State and local governments maintain robust liquidity, with rainy-day funds at near-record levels (median projected to reach 14% by year-end), providing a buffer against economic slowdowns.
On this page. ... After a period of heavy issuance and muted performance, is the municipal bond (muni) market ready for its close- Aberdeen Investments Muni bonds have been resilient amid uncertainty - Nuveen
