Municipal bonds have made their opening move. After months of being labeled “cheap,” the tax-exempt market responded with a rally across the full curve. Yields dropped, ratios tightened, and early investors saw results. But if you missed the first wave, don’t worry. There’s still opportunity ahead, especially for those focused on what’s next.
Munis may not grab headlines, but their quiet consistency and tax advantages could make them a smart choice for investors seeking stability and income, especially in today’s market. This isn’t a “get out” moment. It’s a “stay and enjoy the yield” one. For many investors, it’s a chance to rethink how munis fit into your portfolio and capitalize on the value that remains.
Going long still makes sense
Even after the rally, the municipal bond curve remains historically steep. Investors can still earn significantly more income by moving into longer maturities, especially in high-quality bonds.
The difference between 10- and 30-year yields is near its highest in over a decade, signaling that long-term munis continue to offer outsized value.
