Municipal bonds posted historic total returns of 5.90% in November. Rallying interest rates led the way, while strong demand aided outperformance versus Treasuries.
Municipal bonds sold off considerably in September alongside vastly rising interest rates.
Municipals posted negative total returns amid rising interest rates. Issuance exceeded tempered expectations, while demand waned as performance struggled.
We maintain a neutral-duration posture overall. We prefer an up-in-quality bias and have become increasingly selective in non-investment grades.
Municipal bonds posted positive absolute and relative performance in June. Modest primary and secondary supply was outpaced by improved demand. While July has historically been a top-performing month, we maintain some near-term caution.
Municipal bonds posted negative total returns in May amid continuing heightened volatility. Interest rates rose throughout most of the month as banking concerns abated, economic data exceeded expectations, comments from the Federal Reserve turned more hawkish, and the debt ceiling negotiations remained contentious to the very end.