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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