Bloomberg Surveillance · Wednesday, August 5, 2026
Despite record issuance in the municipal bond market, absolute yields are considered attractive, particularly in the belly of the curve. Analysts note that while supply has been a headwind, robust demand has helped absorb it, leading to high tax-equivalent yields that are competitive with equities.
“Yes, that's exactly right. So we were seeing that already before this recent repricing. Now where we see you know, I would say the curve remains very steep, right, especially relative the treasury market, So you're getting paid to take on duration.”
“So your ten year bond New Jersey, let's say roughly three and a half percent yield, high tax state, you're looking at, you know, kind of six and a half seven percent all in, which is extremely attractive.”
“So as we talk about this equity melt up, tom seven percent locked in high quality bonds that looks very attractive on a risk reward basis. In my view.”