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Buy The Dip Becomes The Muni Mantra As Bonds Become Even Scarce

TedTed
in Off-Topic
FYI: The “buy the dip” mentality has come to the municipal market.

With tax-exempt yields at the lowest in five decades and mutual funds receiving the most cash since 2010, investors are looking at any pullback as a chance to buy. That’s just what they’ve got: Benchmark 10-year yields climbed by about 0.06 percentage point in the past week since minutes from the Federal Reserve’s last meeting suggested that the central bank may be getting closer to another interest rate increase in the coming months.
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-05-24/buy-the-dip-becomes-the-muni-mantra-as-bonds-become-even-scarcer

Comments

  • slick
    I am anxiously waiting to see if 2 of my muni bonds get called June 1, first call date. Hoping they don't, since they have 4.2 -4.4% yield, maturities 2020 and 2024. These were inherited, and they were issued in mid 2000s. I still pay state tax on them, but no federal, nice to have them as long as they last. If called, back to drawing board on bonds and bond funds with much less yield. They are all S + P AA+ and above rating:)
  • DanHardy
    They are looking strong.

    I have some. I stopped re-investing the dividends to buy a high yield emerging markets fund
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