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    The case for US municipal bonds versus Treasuries

    The case for US municipal bonds versus Treasuries

    14 June 2024 Fixed income

    In our view, several prevailing factors mean US municipal bonds should continue to offer considerable advantages for fixed income investors relative to US Treasuries over the medium term, including:

    1. A steeper muni yield curve and elevated yields relative to history despite the strong underlying fundamentals of many US states.
    2. Resilient credit fundamentals.
    3. Supportive supply and demand dynamics.

    For these reasons, we think US municipals continue to offer significant value, providing a higher yield than US Treasuries, with a lower credit risk than corporate bonds.

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