From Yahoo Finance: 2025-06-22 08:00:00

Investment grade bonds have had a good year, but municipal bonds are struggling. As of June 17, the iShares Core US Aggregate Bond ETF gained 2.85%, while the iShares National Muni Bond ETF lost 1.29%. The market seems to be punishing only the muni market, which makes up 9% of the US bond market. Factors like liquidity issues, potential tax law changes, and federal funding reductions are affecting munis. Investors may need to rethink their bond strategies and consider high-quality, low-cost options. Consider diversifying with bond funds rather than individual bonds to manage risk and interest rate fluctuations.



Read more at Yahoo Finance: What’s Going on With Muni Bonds?