However, Citigroup analysts now argue that gains could be near an end. Specifically, they warn that munis could take a hit once supply picks up.
“The moment supply picks up,” yields will rise, Rai said. “There’s very little cushion before you’ll get a negative return for the rest of the year. Investors have to be careful — there is more downside risk than upside.”
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.