Munis at Risk of Rough March as Tax Season Seen Spurring Sales

  • Investors with big capital gains often dump munis to pay bills
  • March and April are weakest months for inflows: Barclays
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The $4 trillion municipal bond market may be in for a rough road the next couple of months, after a brief respite from its 2022 losses amid haven buying fueled by the Ukraine conflict.

March and April are typically the weakest months for muni-fund inflows because investors tend to unload some holdings to pay tax bills ahead of the mid-April U.S. filing deadline, Barclays Plc strategists say.