: Demand is high, fueled by nearly $8 trillion in sidelined money market funds expected to rotate into bonds as the Fed continues its easing cycle.

: Tax-equivalent yields for investment-grade munis are roughly 6% , and up to 9% for high-yield segments, which compare favorably to other asset classes for those in high tax brackets.

: State and local governments maintain robust liquidity, with rainy-day funds at near-record levels (median projected to reach 14% by year-end), providing a buffer against economic slowdowns.

: The muni yield curve is historically steep, particularly at the 20-year mark, where AAA yields above 4.00% offer a significant "pickup" over 5-year bonds. Key Investment Themes for 2026

: After a "reset" following two years of record issuance, starting yields have lifted, making entry points more attractive than in previous years.

Current market conditions in April 2026 suggest it is an for most tax-aware investors to buy municipal bonds . While the market experienced volatility in March 2026, valuations have strengthened, and tax-equivalent yields remain near historic highs. Market Outlook and Valuations

On this page. ... After a period of heavy issuance and muted performance, is the municipal bond (muni) market ready for its close- Aberdeen Investments Muni bonds have been resilient amid uncertainty - Nuveen

: Analysts see "idiosyncratic" value in specific sectors like pre-paid gas bonds , which offer wider spreads than generic high-grade munis, and affordable housing bonds . Risks to Consider Municipal bonds outlook: Poised for the next act?