Muni Bond ETF Discounts Fade as Market Rebounds
June 26th, 2013 at 4:07pm by John Spence
The discounts to net asset value seen in muni bond ETFs the past week receded on Wednesday as the market rebounded.
Selling pressure abated as iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) rallied more than 2% in afternoon trading. [Muni Bond ETF: On Track for Worst Month Since September 2008]
Also, the muni ETF was trading in line with its intraday indicative value, according to Morningstar data.
Muni bond ETFs had traded at discounts the past few sessions amid a rush for the exits in the relatively illiquid sector and rising interest rates. [Muni Bond ETF Discounts May Signal Buying Opportunity]
MUB is experiencing its biggest rally since 2008 after falling to a two-year low, Bloomberg News reports.
iShares National AMT-Free Muni Bond ETF
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