Muni-Bond Rout Comes as Concerns Brew Over Tax-Exemption Repeal
This article is for subscribers only.
Municipal bonds are selling off this week, causing state and local government debt to cheapen compared to US Treasuries.
The rout comes after threats over a pullback in the muni tax-exemption have mounted. Those concerns coupled with recent market volatility, elevated bond issuance and seasonal pressure caused by investors selling to pay tax bills, have put pressure on the public finance market.