Despite volatility, tax-exempt funds and ETFs saw strong positive net inflows of approximately $32 billion through late March. Who Should Consider Buying?
The municipal yield curve remains historically steep. Analysts at Morgan Stanley suggest that 20-year AA-rated munis offer taxable-equivalent yields of nearly 7% , significantly higher than comparable corporate bonds. should i buy municipal bond funds now
For a deeper dive into these trends, Franklin Templeton's 2026 Outlook and Charles Schwab's Bond Market Analysis provide comprehensive views on why intermediate-term maturities are currently favored. Despite volatility, tax-exempt funds and ETFs saw strong
Munis have a low correlation with the S&P 500 (~0.222), making them effective diversifiers when equities are at all-time highs. Key Risks to Watch Analysts at Morgan Stanley suggest that 20-year AA-rated
Inflation concerns and rising oil prices caused a sharp rise in yields in March, which typically leads to a decline in bond prices.
Whether you should buy municipal bond funds now depends largely on your and risk tolerance , though current April 2026 market conditions present a mix of attractive valuations and recent volatility. Market Outlook: April 2026
Municipal bonds generally have much lower default rates (historically ~0.03%) compared to corporate bonds (~2.5%).