Lofty Muni Valuations Show No Sign of Ebbing in Demand Onslaught
- 30-year muni yields are near historic low versus Treasuries
- ‘Technical tailwinds’ set to support prices, LPL’s Gillum says
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The strength of the municipal-bond market shows no sign of fading in the next few months, sustaining the securities’ historic valuations with investors plowing money into funds that buy tax-exempt debt.
Amid robust demand as lawmakers in Washington debate higher taxes on the wealthy, munis have offered shelter in a tough year overall for fixed-income securities. They’ve eked out a positive return in 2021, while most parts of the bond market have lost money.