“You’re starting to feel the pressure a little bit as far as the supply building,” John Dillon, managing director at Morgan Stanley Wealth Management, said in the article.
The municipal bond market has been supported by an uneven supply and demand dynamic as states remained wary about increasing their balance sheets. States and cities borrowed $261 billion for the year ended Nov. 14, compared to $267 billion for the same period last year.
However, with yields down to generational lows last month, more issuers may begin to borrow. For instance, municipalities are expected to issue $10.1 billion in debt over the next 30 days, the most for the period since 2011. [Rising Supply Could Pressure Muni Bond ETF Gains]
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.