๐ Why are munis becoming increasingly attractive?
The Fed is raising rates and the US 10-year Treasury yield has reached 5%. Its direct impact is being felt on municipal bonds (tax-free income bonds).
๐ Key points:
โข The Bloomberg Muni Index yield is around 4.3%
โข For investors in the highest tax bracket, itโs equivalent to a tax-equivalent 7.3% (according to Fidelis Capital)
โข Muni ETF $MUB: 30-day SEC yield 3.8%, with an expense ratio of just 0.05%
โข According to Bank of America, the Fedโs tough stance and Treasury buybacks of up to $6B may support munis
โข Barclays is also increasing its exposure to munis, and yields are near multi-year highs
๐ก My take: when yields are so high in the traditional market, investors may move money out of risk assets (including crypto) and toward safer income. Thatโs why itโs important to keep an eye on Fed and Treasury yields.
What do you think: how will high yields affect the crypto market? ๐
#Munis #Treasury #MUB #Fed #Binance
โ ๏ธ Not financial advice. DYOR.
The Fed is raising rates and the US 10-year Treasury yield has reached 5%. Its direct impact is being felt on municipal bonds (tax-free income bonds).
๐ Key points:
โข The Bloomberg Muni Index yield is around 4.3%
โข For investors in the highest tax bracket, itโs equivalent to a tax-equivalent 7.3% (according to Fidelis Capital)
โข Muni ETF $MUB: 30-day SEC yield 3.8%, with an expense ratio of just 0.05%
โข According to Bank of America, the Fedโs tough stance and Treasury buybacks of up to $6B may support munis
โข Barclays is also increasing its exposure to munis, and yields are near multi-year highs
๐ก My take: when yields are so high in the traditional market, investors may move money out of risk assets (including crypto) and toward safer income. Thatโs why itโs important to keep an eye on Fed and Treasury yields.
What do you think: how will high yields affect the crypto market? ๐
#Munis #Treasury #MUB #Fed #Binance
โ ๏ธ Not financial advice. DYOR.