The municipal yield curve remains historically steep. Analysts at Morgan Stanley suggest that 20-year AA-rated munis offer taxable-equivalent yields of nearly 7% , significantly higher than comparable corporate bonds.
Inflation concerns and rising oil prices caused a sharp rise in yields in March, which typically leads to a decline in bond prices. should i buy municipal bond funds now
Following a market pullback in March, municipal bond valuations have strengthened, offering attractive value relative to other fixed-income sectors. The municipal yield curve remains historically steep
Whether you should buy municipal bond funds now depends largely on your and risk tolerance , though current April 2026 market conditions present a mix of attractive valuations and recent volatility. Market Outlook: April 2026 Following a market pullback in March, municipal bond
Munis have a low correlation with the S&P 500 (~0.222), making them effective diversifiers when equities are at all-time highs. Key Risks to Watch
For a deeper dive into these trends, Franklin Templeton's 2026 Outlook and Charles Schwab's Bond Market Analysis provide comprehensive views on why intermediate-term maturities are currently favored.