Municipal Bond Trading Volume Tumbles to Lowest in a Decade

  • $551 billion traded in the third quarter is least since 2005
  • Tax-exempt yields plunged over the period as the Fed stood pat

Trading volume in the $3.7 trillion municipal-bond market fell to the lowest level in at least 10 years during the third quarter, which was a period of low and volatile yields as the Federal Reserve considered raising interest rates from near zero.

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