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Munis Become Refuge From Bond Market Losses With Yields Falling

edited March 2021 in Other Investing

Munis Become Refuge From Bond Market Losses With Yields Falling
Fola Akinnibi
(Bloomberg) -- America’s municipal bonds are proving to be a haven for fixed-income investors.

Even as speculation about resurgent economic growth drove up yields on corporate bonds and Treasuries this month -- saddling investors with losses -- tax-exempt debt moved in the opposite direction. Benchmark municipal-bond yields have dropped so far in March, delivering investors a return of 0.72%, according to the Bloomberg Barclays index.---

Anyone thinking adding more MUB.


  • Doesn't make sense in my tax bracket, I think. (10% bracket.) But I hold munis along with other flavors of bonds in my 3 bond funds. I am glad to hear a vote of confidence about PTIAX from @AndyJ, just lately. The others are PRSNX and RPSIX. Which gives me:

    PTIAX. 42.12% munis. (today's yield is 3.84)
    PRSNX. 4.65%. (current yield = 3.03)
    RPSIX. merely 0.24%. (yield is 2.83)

    ...And the balanced funds: BRUFX = 0 in munis.
    PRWCX. = 1.47%.

    Yields on my funds have gone UP lately, not down.
  • edited March 2021
    Right, munis have done considerably better than taxable rate-sensitive fare lately. I'm in OPTAX and two Nuveen muni cef's, plus what PTIAX has, and have noticed that MUB is doing about as well as most investment-grade open-end muni funds.

    If the supply shortage that Bloomberg article talks about lasts, the outperformance could continue for a while. Not sure I'd put all my chips on that, though.

  • Munis: taking a hit today right along with taxables.
  • Yes, I saw the sell-off, when I looked, at the end of the day. I like my mix of stuff. Down on the day by -0.54%.
  • edited March 2021
    While HY Munis are up this year...NVHAX 2.5%...NHMAX 2%
    Many bond funds are down...PTIAX -1.4%...PRSNX -0.95%...DODIX -2.7%...BND(Tot index) -4%
  • edited March 2021
    Last years dog IOFIX +5.18%

    And then there are some CEF bond funds - YTD returns Price/NAV all positive

    PCI 8.56/2.55
    PDI 5.69/1.67
    PFN 4.33/0.85
    PTY 1.65/2.28
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