Muni Bargains Abound in Rush to Raise Debt Ahead of US Election

Bargain hunters have a lot to choose from in the municipal bond market as underwriters look to lure in investors with attractive terms.

State- and local-government bond yields are at the cheapest since late 2023, based on a key gauge of relative value in the market. Ten-year AAA municipal bonds offer about 70% of the yield on similar Treasuries, up from as little as 57% this spring. The higher that ratio, the more attractive munis look in comparison.

At the same time muni-bond sales have hit $315 billion this year— the most over that span since at least 2013 ...