Longer Dated Muni Bonds See Uptick in Demand on Elevated Yields

While municipal bonds have gotten increasingly expensive this year, money managers say that long-dated US state and local debt — often eschewed by investors — still look appealing.

For the first three weeks of 2026 funds investing in long-term munis pulled in more than $800 million each week, according to LSEG Lipper Global Fund Flows data. That followed four straight weeks of outflows at the end of last year.