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‘Can’t Go Up Forever’: Muni Bonds See First Loss Since February

  • Bloomberg benchmark shows tax-free debt down 0.37% in August
  • Market still up for the year, beating Treasuries, corporates

State and local government debt is poised for the first monthly drop since February, stepping back from a rally that made it one of the best performing corners of the bond market. 

The securities have posted a loss of 0.37% since the start of August, according to Bloomberg’s benchmark index, as yields rose on speculation about when the Federal Reserve will start tightening monetary policy.