Thornburg Investment Management Portfolio Manager Eve Lando in Bloomberg News

Muni Bonds Reach Cheapest Level Since 2020 as Citigroup Says It’s Time to Buy

It’s been a bleak stretch in the $4 trillion municipal-bond market, with returns slumping, retail investors dumping bonds and volatility giving issuers pause. But some portfolio managers are jumping into the fray.

They’re dipping into cash piles with munis brushing up against their cheapest levels since 2020 relative to Treasuries, which are outperforming amid haven demand fueled by the war in Ukraine. While both markets are down in 2022 ahead of an expected Federal Reserve rate hike this month, the losses in munis are steeper.

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