Bonds
Expensive Muni Prices Threaten Buyer Shift to Treasuries
- Municipal-Treasury 10-year ratio is hovering around 62%
- Inside of the curve is ‘a little bit too rich,’ investor says
The 10-year municipal benchmark offers just 62% of the yield on similarly-dated Treasuries.
Photographer: Elijah Nouvelage/BloombergThis article is for subscribers only.
Municipal bonds have gotten so rich that investors may be better off buying US Treasuries.
The 10-year municipal benchmark offers just 62% of the yield on similarly-dated Treasuries, well below the historical norm, according to data compiled by Bloomberg. The figure, a key gauge of relative value in the market, has averaged about 85% over the last five years, the data show.