Related: An Alternative Muni Bond ETF Strategy

Municipal bonds continue to experienced robust demand from U.S. investors as reliable source of yield, especially among taxable accounts due to the debt securities’ favorable tax-exempt status. Recently, Japanese investors have gobbled up U.S. munis as a way of generating income as Japan maintains negative interest rates.

“New money may be eyeing these drops as a potentially buying opportunity, particularly in closed-end funds that are starting to display some value.  The overriding factor for this sector is going to be driven by the direction of interest rates and investor appetite for risk,” adds ETF Daily News.

For more information on the munis market, visit our municipal bonds category.

iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB)

Tom Lydon’s clients own shares of MUB.