For a deeper dive into these trends, Franklin Templeton's 2026 Outlook and Charles Schwab's Bond Market Analysis provide comprehensive views on why intermediate-term maturities are currently favored.
Heavy new issuance—projected to reach $600 billion in 2026—can create technical headwinds and put pressure on prices if demand softens.
Those in the highest federal tax brackets benefit most from the tax-exempt status of municipal interest.
Munis have a low correlation with the S&P 500 (~0.222), making them effective diversifiers when equities are at all-time highs. Key Risks to Watch
Whether you should buy municipal bond funds now depends largely on your and risk tolerance , though current April 2026 market conditions present a mix of attractive valuations and recent volatility. Market Outlook: April 2026
Benchmark 10-year tax-exempt yields rose sharply in March, closing at 3.06% , up from 2.47% in February.
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