Muni-Bond Yields Jump Over Treasuries for First Time Since 2016
- 10-year benchmark tax-free debt yields more than Treasuries
- ‘Munis have hit this wall -- they just can’t go much further’
Photographer: Daniel Acker/Bloomberg
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Treasuries have rallied so hard that they’re breaking their usual link with municipal bonds.
The yield on 10-year Treasuries tumbled 14 basis points Thursday to about 0.92%, pushing it below those on top-rated tax-exempt debt for the first time since late 2016, according to data compiled by Bloomberg. Thirty-year state and local government bonds are yielding 1.54%, roughly the same as Treasuries despite the tax break that usually leaves investors willing to accept far lower payouts.