Muni Bonds Rally by Most in a Year as Markets Welcome Ceasefire

State and local government bonds surged by the most in a year after the ceasefire to the US war against Iran unleashed relief rallies across global financial markets.

The advance sent benchmark 10-year yields down by 9 basis points to 2.9% as of 3 p.m. New York time. That’s the biggest drop since last April, when President Donald Trump’s decision to pause his tariffs pulled markets back from a meltdown and set off similar rebounds.