MuniBond Yields Hit YTD High in September

  • AAA Rated Tax Exempt MuniBonds with a 10yr maturity are trading at a 2.90% level as of September 12th 2023
  • This is the highest yield level so far in 2023
  • The highest yield level in 2022 was a 3.39% yield on October 26th 2022, which was the highest yield in more than a decade
  • Yields for 3 month munis are higher at 3.42% but the investor faces reinvestment risk if forced to reinvest at lower yields in 3 months. 
  • Bottom Line: MuniBond yields remain historically elevated and offer an attractive entry point
#MuniBonds #Munis #WatkinsonMuniBonds #GetRealStayRich
The Watkinson Capital Angle:
  • We do not buy AAA rated MuniBonds so we demand higher yields in the investment grade spectrum. We find more risk adjusted value (more yield with negligible less risk) in MuniBonds rated A1-A3 by Moody's and A+-A- by S&P
  •  Timing the bond market just like trying to time the stock market is an impossible game to play. Waiting and hoping for higher rates is not a sound investment process. 

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