Muni Buyers Start to Nibble as Market Has Worst Month Since 2023

The US municipal market’s worst monthin more than two years has cheapened the debt enough to lure some investors looking to add to their tax-exempt holdings.

It’s been a tough stretch across fixed income, with the Middle East conflict pushing up oil prices and sparking inflation concerns. But munis have had an especially poor month, declining2.5% in March through Monday, on track for their biggest monthly loss since September 2023, Bloomberg index data show. Treasuries, meanwhile, have held up marginally better, with a 1.8% drop.

A heavy calendar of supply contributed to munis’ underperformance. Issuance in 2026 ...