After a volatile start to the year, municipal bonds rebounded in the second quarter – with intermediate maturities leading performance. The yield curve steepened, fund flows turned positive, and valuations for shorter maturities returned to historical norms.
With a 4.8% tax-equivalent yield and lower duration risk than the U.S. Aggregate Bond Index, intermediate munis continue to offer compelling, tax-advantaged opportunities for investors seeking income with balanced risk.
Key takeaway: Municipals are well-positioned for today’s market environment.