How are municipal bonds doing today?
James Olson
Updated on February 19, 2026
Market overview The S&P Municipal Bond Index returned 0.29% for the month, bringing the year-to-date total return to 1.24%. Lower credit quality and longer duration bonds outperformed.
What is the current interest rate on municipal bonds?
Municipal Bonds
| Name | Yield | Time (EDT) |
|---|---|---|
| BVMB2Y:IND Muni Bonds 2 Year Yield | 0.08% | 4:00 PM |
| BVMB5Y:IND Muni Bonds 5 Year Yield | 0.40% | 4:00 PM |
| BVMB10Y:IND Muni Bonds 10 Year Yield | 0.91% | 4:00 PM |
| BVMB30Y:IND Muni Bonds 30 Year Yield | 1.52% | 4:00 PM |
How safe are AAA municipal bonds?
1 Aaa is the highest possible rating; Aa is the second-highest.) Overall, only 0.8% of municipal bonds rated investment-grade defaulted within 10 years of issuance. Higher-quality bonds tend to perform better than lower-rated securities even during times of economic distress.
What is the average rate of return on municipal bonds?
According to Andrew Clinton, the founder and CEO of Clinton Investment Management, the yields to worst for investment-grade municipal bonds (rated Baa or higher by Moody’s Investors Service or BBB or higher by S&P Global) with an average of10 years until maturity now range between 2% and 2.25%.
Is it a good time to invest in municipal bonds?
Municipal securities have been recently trading rich compared to Treasurys, Levine says. High-yield municipal bond returns are up around 1.5% year to date and have generally outperformed many other fixed-income asset classes such as investment-grade corporate bonds which have gone down 5.3% year to date.
Are municipal bonds a good investment today?
Investing in municipal bonds is a good way to preserve capital while generating interest. Most of them are exempt from federal taxes, and some are tax-free at the state and local level as well. 1 Municipal bonds, also called munis, help build infrastructure in your area.
What are the disadvantages of municipal bonds?
The only real disadvantage of municipal bonds is that they carry relatively low interest rates compared to other types of securities. This is particularly true when the economy is strong and interest rates for Treasury bills and CDs rise.
What is the effective yield on US AAA bonds?
US Corporate AAA Effective Yield is at a current level of 1.85%, down from 1.89% the previous market day. This represents a market_daily annualized growth rate of -533.3%, compared to a long term average annualized growth rate of -2.59%. View and export this data going back to 1996. Start your Free Trial
What’s the current yield on a municipal bond?
These rates reflect the approximate yield to maturity that an investor can earn in today’s tax-free municipal bond market as of 06/07/2021. Since 1978, investors looking for municipal bonds have relied on FMSbonds for market insight and information.
What is the effective yield on US corporate bonds?
US Corporate AAA Effective Yield is at a current level of 2.50%, unchanged from 2.50% the previous market day. This represents a market_daily annualized growth rate of 0.00%, compared to a long term average annualized growth rate of -1.67%.