Munis Tumble After Trump Victory Ignites Deficit Concerns
- Yields on muni bonds jumped as much as 16 basis points
- Investors of muni debt tend to take cues from Treasury market
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Municipal bonds plummeted on Wednesday after voters elected Donald Trump as US president. The move followed a rout in US Treasuries, which sold off over concerns that Trump’s policies will widen an already bloated budget deficit and cause inflation to surge.
Benchmark municipal-bond yields jumped as much as 16 basis points as of 4 p.m. New York time.