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Muni Bonds Rally for Three Straight Days in Rare 2022 Reprieve

  • Yields on muni bonds slip for third day amid risk-on mood
  • Goldman Sachs sees ‘pleasant interruption’ in painful year
Bloomberg business news
Merrill's Sieg Bullish on Markets Despite Volatility

After months of anguish, municipal bond investors are finally seeing a moment of reprieve.

State- and local-government debt extended a rally Tuesday, with 30-year maturities heading for their biggest one-day gain since June as traders weighed the odds the Federal Reserve will moderate the pace of its policy tightening. Yields on the municipal bonds tumbled as much as 7 basis points Tuesday, according to data compiled by Bloomberg, with a key index fresh off its biggest jump in three months.