May '22... Munis have cheapened against US Treasuries



 As individual investors continue to sell MuniBond mutual funds, value continues to present itself to the professionals like us. We have observed 4 months of continual weekly selling of MuniBond mutual funds to the tune of $3 billion per week. 
 
This is one example of relative value caused by individual investors irrationally selling. 
#municipalbonds #MuniBonds #MuniBondVana 
 
Munis Are Cheapest Since November 2020 Relative to Treasuries
2022-05-12 12:52:08.922 GMT


By Danielle Moran
(Bloomberg) -- Ten-year benchmark municipal bonds yielded
about 98.8% of comparable-maturity Treasuries on May 11, the
most since November 2020, signaling state and local-government
securities have cheapened on a relative basis.
* The ratio climbed as muni yields have increased this week
while Treasury yields fell: Rates on the 10-year municipal
benchmark climbed 2 basis points on Wednesday to 2.87%, while
those on 10-year Treasuries fell 7 basis points to 2.92% and
dropped further Thursday
* The muni-Treasury ratio, a key measure of relative value,
averaged about 75% over the last year


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