In wake of Fed cut, and despite underperforming taxables, muni momentum is positive – Bond Buyer

Following the recent Federal Reserve interest rate cut, the municipal bond market has shown positive momentum. Despite taxable bonds underperforming, municipal bonds have been holding steady. This trend indicates a growing confidence in the municipal bond market among investors. The Federal Reserve’s decision to lower interest rates has likely contributed to this positive momentum. Investors are turning to municipal bonds as a safer investment option compared to taxable bonds. Overall, the outlook for the municipal bond market remains optimistic in the current economic climate.