The municipal yield curve remains historically steep. Analysts at Morgan Stanley suggest that 20-year AA-rated munis offer taxable-equivalent yields of nearly 7% , significantly higher than comparable corporate bonds.
Munis have a low correlation with the S&P 500 (~0.222), making them effective diversifiers when equities are at all-time highs. Key Risks to Watch should i buy municipal bond funds now
Following a market pullback in March, municipal bond valuations have strengthened, offering attractive value relative to other fixed-income sectors. The municipal yield curve remains historically steep