- Municipal bonds are near their cheapest levels relative to Treasuries in a year, marking a relative-value extreme for the asset class.
- The cheapening comes from heavy muni issuance, fading investor demand and a broader fixed-income selloff hitting at the same time.
- The move is a US state and local government bond story, framed on Bloomberg Real Yield by Aashna Shah.
Quotes
“US state and local government bonds are near their cheapest levels relative to Treasuries in a year as heavy issuance and fading demand collide with a broader fixed-income selloff.”