Muni 10-Year Yield Sets Record Low as Fed Seen on Hold: Chart

The yield on an index of 10-year AAA rated municipal bonds dropped to 1.48 percent on Tuesday, the lowest since Bloomberg data began in January 2009. The tax-exempt market has gained for 11 consecutive months as the Federal Reserve shows little sign of raising interest rates quickly -- the futures market says there’s no chance the U.S. central bank will announce Wednesday that it’s raising rates. Meanwhile, the amount of new muni sales set for the next 30 days is about half of what it was a week ago, while individuals have poured money into tax-exempt mutual funds for the longest stretch since 2010.

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