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