Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Muni Bonds Are A Screaming Buy As Yields Rise For 10 Straight Days

Wednesday, November 23, 2016 7:25
% of readers think this story is Fact. Add your two cents.

(Before It's News)

From Tyler Durden: US Municipal Bond yields have now risen for 10 straight days, spiking from 1.72% to 2.34% today – the highest since July 2015.

This crash has now moved munis to the most-oversold-ever as the group suffers the biggest fund outflows since 2013’s taper tantrum.

The last 2 times that Muni yields spiked at such a pace marked dramatic buying opportunities…

Notably, Munis are also “cheapest” to Treasuries since Oct 2015…

As Bloomberg notes, Bank of America analysts have pointed out that “the market sell off in munis is likely to continue to the end of November and into the first full week of December in a slow and negotiating fashion in order to reach an exhaustion point,” the report said.

Bank of America Merrill Lynch projects that the bull market in bonds that began in 1981 should run for another two years given the current and expected health of the global economy.

“This sloppy market provides buying opportunities, in our view.”

ETF investors looking for muni bond exposure should consider the iShares S&P National AMT Free Municipal Bond Fund (NYSE:MUB). MUB, which boasts $7.3 billion in assets under management, has fallen 2.36% year-to-date. The fund was mostly flat in Wednesday morning trading.

This article is brought to you courtesy of ZeroHedge.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.