Muni Buyers Plow Into Long Bonds to Win Once Fed Increases Rates

  • Yield gap between 2- and 10-year munis smallest since 2013
  • Janney, Morgan Stanley, RBC see few risks in longer-dated debt

Municipal-bond investors are snapping up the longest-maturing tax-exempt debt as the Federal Reserve prepares to raise interest rates, even though yields signal it’s the worst time to do so in almost three years. 

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