Should I Buy Municipal Bond Funds Now -

Following a market pullback in March, municipal bond valuations have strengthened, offering attractive value relative to other fixed-income sectors.

Despite volatility, tax-exempt funds and ETFs saw strong positive net inflows of approximately $32 billion through late March. Who Should Consider Buying?

The municipal yield curve remains historically steep. Analysts at Morgan Stanley suggest that 20-year AA-rated munis offer taxable-equivalent yields of nearly 7% , significantly higher than comparable corporate bonds. should i buy municipal bond funds now

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

Are Tax-Free Municipal Bonds Really Worth It? Key Considerations Following a market pullback in March, municipal bond

Those in the highest federal tax brackets benefit most from the tax-exempt status of municipal interest.

Benchmark 10-year tax-exempt yields rose sharply in March, closing at 3.06% , up from 2.47% in February. The municipal yield curve remains historically steep

Municipal bonds generally have much lower default rates (historically ~0.03%) compared to corporate bonds (~2.5%).