Muni Bonds See Biggest Decline Since Tariff Fueled-Selloff
Workers at a development project along the Trinity River in Dallas.
Photographer: Jonathan Johnson/BloombergMunicipal bonds deepened their selloff on Tuesday, with benchmark yields rising as much as 11 basis points, as geopolitical unrest in the Middle East and surging oil prices roiled US Treasuries for a second day.
Ten-year muni yields rose 11 basis points to 2.63% as of 4 p.m. in New York, marking the biggest gain since April when volatility from President Donald Trump’s tariff policies rocked the market, according to data compiled by Bloomberg. Climbing oil prices spurred traders to curb bets on more than one Federal Reserve interest-rate cut this year, causing a selloff in Treasuries.