Municipal Market Insight

Sep 8, 2023

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Munis fall short of seasonal expectations in August

  • Municipals posted negative absolute and excess returns amid rising interest rates.
  • Issuance exceeded tempered expectations, while demand waned as performance struggled.
  • Late-cycle macro dynamics and fading seasonal tailwinds could create opportunity in the autumn.

Yields are again attractive & offer greater income


Munis chart

Source: Refinitiv, BlackRock, as of 08/30/23. *TEY represents taxable equivalent yield.

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Peter Hayes
Head of Municipal Bonds
Peter Hayes, Managing Director, is Chief Investment Officer and Head of the Municipal Bond Group within the Portfolio Management Group (PMG) as well as Global Head of..
Sean Carney
Head of Municipal Strategy, BlackRock Investment Strategy Team
Sean Carney, Managing Director and Head of Municipal Strategy and Primary Markets Group within BlackRock's Municipal Fixed Income business in BlackRock's Portfolio ...

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Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to for most recent month-end performance.

To obtain more information on the funds, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit National Municipal Fund, Strategic Municipal Opportunities Fund and High Yield Municipal Fund.